CHAPTER 88
HOUSE BILL No. 2481
(Amended by Chapter 166)
An Act amending the Kansas mortgage business act; amending K.S.A.
2000 Supp. 9-2201,
9-2202, 9-2203, 9-2204, 9-2205, 9-2206, 9-2207, 9-2208, 9-2209,
9-2211, 9-2212, 9-2213,
9-2214, 9-2215, 9-2216 and 9-2220 and repealing the
existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) Each licensee
shall maintain a journal of mort-
gage transactions at the licensee's principal place of business,
which shall
include at least the following information:
(1) Name, address and telephone number of
each loan applicant;
(2) type of loan applied for and date of
application; and
(3) disposition of loan application,
indicating date of loan funding,
loan denial, withdrawal and name of lender if applicable.
(b) Each licensee shall annually, on or
before April 1, file a written
report with the commissioner containing the information that the
com-
missioner may reasonably require concerning the licensee's business
and
operations during the preceding calendar year. The report shall be
made
in the form prescribed by the commissioner. Any licensee who fails
to
file the report required by this section with the commissioner by
April 1
shall be subject to a late penalty of $100 for each day after April
1 the
report is delinquent, but in no event shall the aggregate of late
penalties
exceed $5000. The commissioner may relieve any licensee from the
pay-
ment of any penalty, in whole or in part, for good cause.
Sec. 2. K.S.A. 2000 Supp. 9-2201 is
hereby amended to read as fol-
lows: 9-2201. As used in this act:
(a) ``Bona fide office'' means a
registrant's physical office an appli-
cant's or licensee's principal place of business which meets
all of the fol-
lowing requirements:
(1) The office is located in this
state;
(2) the office is not located in a
personal residence;
(3) the office has regular hours of
operation;
(4) the office is accessible to the
public;
(5) the office is leased or owned by
the licensee and serves as an office
for the transaction of the licensee's mortgage business;
(6) the office is staffed by the
registrant or an employee of the reg-
istrant;
(7) (6) the
office is separate from any office of another registrant; and
(8) the office contains the books
and records of the registrant or cop-
ies of the books and records
(7) all of licensee's books, records
and documents are accessible
through that office.
(b) ``Branch office'' means a place of
business, other than a principal
place of business, where mortgage business is conducted, and
which is
licensed as required by this act.
(b)
(c) ``Commissioner'' means the Kansas state bank
commissioner.
(c) ``Employee'' means any
individual:
(1) Who is employed solely by a
registrant or applicant, and who is
not acting as an independent contractor;
(2) who conducts mortgage
business activities only in the name of the
registrant or applicant; and
(3) whose conduct of mortgage
business is the responsibility of the
registrant or applicant.
(d) ``License'' means a license issued
by the commissioner to engage
in mortgage business as a mortgage company.
(e) ``Licensee'' means a person who is
licensed by the commissioner
as a mortgage company.
(f) ``Loan originator'' means an
individual:
(1) Who engages in mortgage business
on behalf of a single mortgage
company;
(2) who is registered with the
commissioner as required by this act;
(3) whose conduct of mortgage business
is the responsibility of the
licensee; and
(4) whose job responsibilities include
direct contact with borrowers
during the loan origination process, which can include
soliciting, negoti-
ating, acquiring, arranging or making mortgage loans for others,
obtain-
ing personal or financial information, assisting with the
preparation of
loan applications or other documents, quoting loan rates or
terms, or
providing required disclosures. It does not mean a person whose
job re-
sponsibilities on behalf of a licensee are solely clerical in
nature.
(d)
(g) ``Mortgage business'' means engaging in, or holding
out to the
public as willing to engage in, for compensation or gain, or in the
expec-
tation of compensation or gain, directly or indirectly, the
business of mak-
ing, originating, servicing, soliciting, placing, negotiating,
acquiring, sell-
ing, or arranging for others, or offering to solicit, place,
negotiate, acquire,
sell or arrange for others, mortgage loans in the primary
market.
(h) ``Mortgage company'' means a
person engaged in mortgage busi-
ness from a principal place of business or branch office, which
has been
licensed as required by this act.
(e)
(i) ``Mortgage loan'' means a loan or agreement to
extend credit
made to a natural person which is secured by a first or second
mortgage,
deed of trust, contract for deed or other similar instrument
or document,
and which creates a lien on representing a
security interest or lien upon
any lot intended for residential purposes or a one-to-four
family dwelling,
located in this state, occupied or intended to be occupied for
residential
purposes by the owner, including the renewal or refinancing of
any such
a loan.
(f)
(j) ``Person'' means any individual, sole
proprietorship, corpora-
tion, partnership, trust, association, joint venture, pool
syndicate, unin-
corporated organization or other form of entity, however
organized.
(g) (k) ``Primary
market'' means the market wherein mortgage loans
are originated between a lender and a borrower, whether or not
through
a mortgage broker or other means.
(1) ``Principle place of business''
means a licensed place of business
where mortgage business is conducted, which has been designated
by a
licensee as the primary headquarters from which all mortgage
business
and administrative activities are managed and directed.
(h)
(m) ``Promotional items'' means pens, pencils, hats and
other such
novelty items.
(i)
(n) ``Registrant'' means any individual or
other entity who holds a
valid certificate of registration to conduct
mortgage business in this state
as a loan originator.
Sec. 3. K.S.A. 2000 Supp. 9-2202 is
hereby amended to read as fol-
lows: 9-2202. The following are exempt from the
registration licensing
requirements of this act:
(a) Any bank, bank holding
company, savings bank, trust company,
savings and loan association, building and loan association,
industrial loan
company or credit union regulated by an agency
organized, chartered or
authorized under the laws of the United States or of any
state which is
authorized to make loans and to receive deposits;
(b) any entity directly or indirectly
regulated by an agency of the
United States or of any state which is a subsidiary or affiliate of
any entity
listed in subsection (a) if 25% or more of such entity's common
stock is
owned by any entity listed in subsection (a);
(c) any person who is registered
with the Kansas securities commis-
sioner as a loan broker pursuant to K.S.A. 50-1001
et seq., and amend-
ments thereto, or who is licensed by the Kansas
consumer credit com-
missioner as a supervised lender pursuant to
K.S.A. 16a-2-301 et seq.,
and amendments thereto;
(d) the United States of America, the
state of Kansas, any other state,
or any agency or instrumentality of any governmental entity;
and
(e) a registrant's
employee
(e) any individual who with their own
funds for their own investment
makes a purchase money mortgage or finances the sale of their
own prop-
erty, except that any person who enters into more than five such
invest-
ments or sales in any twelve-month period shall be subject to
all provisions
of this act.
Sec. 4. K.S.A. 2000 Supp. 9-2203 is
hereby amended to read as fol-
lows: 9-2203. It shall be unlawful for any person to engage
in or to ad-
vertise, publish or otherwise hold out to the public that
such person is
engaged in the mortgage business without first being
registered with the
commissioner as required by this act.
(a) Mortgage business shall only be
conducted in this state at or from
a mortgage company licensed by the commissioner as required by
this
act. A licensee shall be responsible for all mortgage business
conducted
on their behalf by loan originators or other
employees.
(b) Mortgage business involving loan
origination shall only be con-
ducted in this state by an individual who has first been
registered with
the commissioner as a loan originator as required by this act.
Loan orig-
ination shall only be conducted at or from a mortgage company
and a
registrant shall only engage in mortgage business on behalf of
one mort-
gage company.
(c) Any such individual or
member or officer of any such corporation
or other entity person violating this
section act shall be guilty of a mis-
demeanor, and upon conviction shall be punished by a definite term
of
confinement in the county jail which shall be fixed by the court
and shall
not exceed one year, or a fine not exceeding $5,000 or both.
Sec. 5. K.S.A. 2000 Supp. 9-2204 is
hereby amended to read as fol-
lows: 9-2204. (a) Any person required to register
be licensed as a mortgage
company pursuant to this act shall submit to the
commissioner an a sep-
arate application for registration the
principal place of business and each
branch office on forms prescribed and provided by the
commissioner.
The application or applications shall contain information
the commis-
sioner deems necessary to adequately identify:
(1) The location and
nature of the mortgage business to be con-
ducted, principal place of business address and each branch
office ad-
dress;
(2) the identity, character and
qualifications of an individual appli-
cant;
(3) the identity, character and
qualifications of the loan originators,
owners, officers, directors, members, partners and employees
of the en-
tity, if the applicant is a partnership,
corporation or other business entity;
(4) the name under which the applicant
intends to conduct business;
and
(5) other information the commissioner
requires to evaluate the fi-
nancial responsibility and condition, character,
qualifications, and fitness
of the applicant and compliance with the provisions of this
act.
(b) Any individual required to
register as a loan originator pursuant
to this act shall submit to the commissioner an application for
registration
on forms prescribed and provided by the commissioner. The
application
shall contain information the commissioner deems necessary to
adequately
identify the location where the individual engages in mortgage
business
activities, the licensee for whom the registrant will conduct
mortgage busi-
ness and other information the commissioner requires to evaluate
the con-
dition, character, qualifications, and fitness of the applicant
and compli-
ance with the provisions of this act.
(b) (c) Each
application for registration shall be accompanied
by a
nonrefundable fee of not less than $100
$50, which may be increased by
rules and regulations pursuant to K.S.A. 2000 Supp. 9-2209,
and amend-
ments thereto.
(c) (d) An
application for registration shall be approved,
and a non-
assignable certificate of license or
registration shall be issued to the ap-
plicant provided:
(1) The commissioner has received the
complete application and fee
required by this section; and
(2) the commissioner determines the
proposed name under which an
applicant for a mortgage company license intends to conduct
business is
not misleading or otherwise deceptive; and
(2) (3) the
commissioner determines the financial responsibility and
condition, character, qualifications and fitness of the applicant
warrants
a belief that the business of the applicant will be conducted
competently,
honestly, fairly and in accordance with all applicable state and
federal
laws.
Sec. 6. K.S.A. 2000 Supp. 9-2205 is
hereby amended to read as fol-
lows: 9-2205. (a) A certificate of license
or registration shall become ef-
fective as of the date specified on the face of the
certificate.
(b) The registration
A license shall be renewed in each odd-numbered
year by filing with the commissioner, at least 30 days prior to the
expi-
ration of the registration license, a
renewal application, containing infor-
mation the commissioner requires to determine the existence of
material
changes from the information contained in the applicant's original
reg-
istration license application or prior
renewal applications.
(c) A registration shall be renewed
annually by filing with the com-
missioner, at least 30 days prior to the expiration of the
registration, a
renewal application, containing information the commission
requires to
determine the existence of material changes from the information
con-
tained in the applicant's original registration application or
prior renewal
applications, including the completion of any continuing
education
requirements.
(c) (d) Each
renewal application shall be accompanied by a nonre-
fundable fee which shall be established by rules and regulations
pursuant
to K.S.A. 2000 Supp. 9-2209, and amendments thereto.
(d) (e) Any
renewal application received by the commissioner after
the expiration date of the registrant's current
certificate license or regis-
tration shall be treated as an original application and be
subject to all
reporting and fee requirements contained in K.S.A. 2000 Supp.
9-2204,
and amendments thereto.
Sec. 7. K.S.A. 2000 Supp. 9-2206 is
hereby amended to read as fol-
lows: 9-2206. If the commissioner fails to issue a
certificate of license or
registration within 60 days or grant a renewal within 30 days after
a filed
application is deemed complete by the commissioner, the applicant
may
make written request for an appeal on the issue of the
applicant's regis-
tration or renewal qualifications hearing.
The commissioner shall conduct
a hearing in accordance with the Kansas administrative procedure
act.
Sec. 8. K.S.A. 2000 Supp. 9-2207 is
hereby amended to read as fol-
lows: 9-2207. The commissioner may deny, suspend, revoke, or refuse
to
renew the a license or registration
of a mortgage business issued pursuant
to this act, if the commissioner finds, after notice and
opportunity for a
hearing conducted in accordance with the provisions of the
administrative
procedures act, that:
(a) The applicant, licensee or
registrant has repeatedly or willfully
violated any section of this act or any rule and regulation or
order lawfully
made pursuant to this act;
(b) facts or conditions exist which would
have justified the denial of
the license, registration or renewal had these facts or
conditions existed
or been known to exist at the time the application for the
license, regis-
tration or renewal was made;
(c) the applicant, licensee or
registrant has filed with the commis-
sioner any document or statement containing any false
representation of
a material fact or fails to state a material fact;
(d) the applicant, licensee or
registrant has been convicted of any
crime involving fraud, dishonesty or deceit;
(e) the applicant, licensee or
registrant has engaged in or is engaging
in deceptive business practices;
(f) the applicant, licensee or
registrant, or an employee of the appli-
cant, licensee or registrant, has been the subject of any
disciplinary action
by this agency or any other state or federal regulatory agency;
(g) a final judgment has been entered
against the applicant, licensee
or registrant in a civil action and the commissioner finds, based
upon the
conduct on which the judgment is based, that licensing or
registration of
such person would be contrary to the public interest;
(h) the applicant, licensee or
registrant, or an employee of the appli-
cant, licensee or registrant has been convicted of engaging
in mortgage
business activity without authorization pursuant to K.S.A. 2000
Supp. 9-
2203, and amendments thereto or a substantially similar offense in
an-
other state; or
(i) the applicant, licensee or
registrant has refused to furnish infor-
mation required by the commissioner within a reasonable period of
time
as established by the commissioner.
Sec. 9. K.S.A. 2000 Supp. 9-2208 is
hereby amended to read as fol-
lows: 9-2208. (a) Every certificate of registration shall
be properly dis-
played in a prominent place within the registrant's place
of business Each
licensee shall prominently display the license of any principal
place of
business and any branch office in a way that reasonably
assures recogni-
tion by customers and members of the general public who enter
the
registrant's licensee's place of
business.
(b) Prior to entering into any contract
for the provision of services or
prior to the registrant licensee receiving
any compensation or promise of
compensation for a mortgage loan the registrant
licensee shall acquire
from the customer a signed acknowledgment containing such
information
as the commissioner may prescribe by rule and regulation. A
copy of the
acknowledgment The signed acknowledgment shall
be retained by the
licensee and a copy shall be provided to the customer.
(c) The registrant shall identify
that such registrant is registered un-
der this act in all advertising or solicitations directed
to Kansas residents,
including internet solicitations. For the purpose of this
subsection, ``ad-
vertising'' does not include business cards or promotional
items.
(c) All solicitations and published
advertisements concerning mort-
gage business directed at Kansas residents, including those on
the internet
or by other electronic means, shall contain the words ``Kansas
licensed
mortgage company,'' and must also contain the name, address and
license
number of the licensee, which shall be the same as the name,
address and
number on record with the commissioner. Each licensee shall
maintain a
record of all solicitations or advertisements for a period of 25
months. For
the purpose of this subsection, ``advertising'' does not include
business
cards or promotional items.
(d) No solicitation or advertisement
shall contain false, misleading or
deceptive information, or indicate or imply that the interest
rates or
charges stated are ``recommended,'' ``approved,'' ``set'' or
``established'' by
the state of Kansas.
(d) (e) No
licensee or registrant shall conduct mortgage business
in
this state using any name other than the name or names stated on
the
certificate of their license or
registration.
Sec. 10. K.S.A. 2000 Supp. 9-2209
is hereby amended to read as
follows: 9-2209. The commissioner may exercise the following
powers:
(a) Adopt rules and regulations as
necessary to carry out the intent
and purpose of this act;
(b) make investigations and examinations
of the registrant's licensee's
operations, books and records as the commissioner deems necessary
for
the protection of the public;
(c) charge reasonable costs of
investigation, administration or exam-
ination to be paid by the applicant, licensee or registrant
under investi-
gation or, examination or requiring
administrative action;
(d) order any licensee or
registrant to cease any activity or practice
which the commissioner deems to be deceptive, dishonest, violative
of
state or federal law or unduly harmful to the interests of the
public;
(e) exchange any information regarding
the administration of this act
with any agency of the United States or any state which regulates
the
licensee or registrant or administers statutes, rules and
regulations or pro-
grams related to mortgage loans; and
(f) disclose to any person or entity that
an applicant's, licensee's or
registrant's certificate of application,
license or registration has been de-
nied, suspended, revoked or refused renewal;
(g) require or permit any person to file
a written statement, under
oath or otherwise as the commissioner may direct, setting forth all
the
facts and circumstances concerning any apparent violation of this
act, or
any rule and regulation promulgated thereunder or any order issued
pur-
suant to this act; and
(h) receive, as a condition in settlement
of any investigation or ex-
amination, a payment designated for consumer education to be
expended
for such purpose as directed by the
commissioner.;
(i) require that any applicant,
registrant, licensee or other person suc-
cessfully passes a standardized examination designed to
establish such
person's knowledge of mortgage business transactions and all
applicable
state and federal law. Such examinations shall be created and
adminis-
tered by the commissioner, or the commissioner's designee, and
may be
made a condition of application approval or application renewal;
and
(j) require that any licensee,
registrant or other person complete a
minimum number of continuing education hours on an annual or
biannual
basis. Continuing education courses shall be approved by the
commis-
sioner, or the commissioner's designee, and may be made a
condition of
application renewal.
Sec. 11. K.S.A. 2000 Supp. 9-2211
is hereby amended to read as
follows: 9-2211. (a) Each applicant or registrant
licensee who maintains a
bona fide office shall comply with at least one of the
following:
(1) Submit written evidence which
establishes, to the commissioner's
satisfaction, that the applicant or registrant is approved
as a mortgagee
by:
(A) The federal department of
housing and urban development;
(B) the federal national mortgage
association; or
(C) the federal home loan
mortgage corporation.
(2) (A) file with
the commissioner a surety bond or irrevocable
letter
of credit in the amount of
$25,000 $50,000, in a form acceptable to
the
commissioner, issued by an insurance company or financial
institution
authorized to conduct business in this state, securing the
applicant's or
registrant's licensee's faithful
performance of all duties and obligations of
a registrant licensee meeting the following
requirements:
(i) (1) The bond
or letter of credit shall be payable to the office
of
the state bank commissioner;
(ii) (2) the
terms of the bond or irrevocable letter of credit
shall pro-
vide that it may not be terminated without 30 days prior written
notice
to the commissioner; and
(iii) (3) the
bond or irrevocable letter of credit shall be
available for
the recovery of expenses, fines and fees levied by the commissioner
under
this act, and for losses or damages which are incurred by any
borrower
or consumer as a result of the applicant's or
registrant's licensee's failure
to comply with the requirements of this act;
and
(B) submit evidence that
establishes, to the commissioner's satisfac-
tion, that the applicant or registrant shall at all times
maintain not less
than $10,000 in liquid assets acceptable to the
commissioner.
(3) Submit evidence that
establishes, to the commissioner's satisfac-
tion, that the applicant or registrant shall at all times
maintain a minimum
net worth of $100,000. Evidence of net worth shall include
the submission
of a balance sheet accompanied by a written statement by an
independent
certified public accountant attesting that the balance
sheet has been re-
viewed in accordance with generally accepted accounting
principles.
(b) Each applicant or
registrant licensee who does not maintain a
bona
fide office shall comply with both of the following:
(1) File with the commissioner a surety
bond or irrevocable letter of
credit in the amount of $100,000, in a form
acceptable to the commis-
sioner, issued by an insurance company or financial
institution authorized
to conduct business in this state, securing the applicant's or
registrant's
licensee's faithful performance of all duties and
obligations of a registrant.
licensee meeting the following requirements:
(A) The bond or letter of
credit shall be payable to the office of the
state bank commissioner.;
(B) the terms of the bond or
irrevocable letter of credit shall provide
that it may not be terminated without 30 days prior written notice
to the
commissioner.; and
(C) the bond or irrevocable
letter of credit shall be available for the
recovery of expenses, fines and fees levied by the commissioner
under
this act, and for losses or damages which are incurred by any
borrower
or consumer as a result of the applicant's or
registrant's licensee's failure
to comply with the requirements of this
act.;
(2) Submit evidence that establishes, to
the commissioner's satisfac-
tion, that the applicant or registrant
licensee shall at all times maintain a
minimum net worth of $50,000. Evidence of net worth shall include
the
submission of a balance sheet accompanied by a written statement by
an
independent certified public accountant attesting that the balance
sheet
has been reviewed in accordance with generally accepted
accounting
principles.
Sec. 12. K.S.A. 2000 Supp. 9-2212
is hereby amended to read as
follows: 9-2212. (a) Except for those persons meeting the
requirements
of K.S.A. 2000 Supp. 9-2202 and amendments thereto, a
registrant shall
not No person required to be licensed or
registered under this act shall:
(a) Pay compensation to, contract
with or employ as an independent
contractor in any manner, any person
engaged in mortgage business who
does not hold a valid certificate of registration
is not properly licensed or
registered, unless such person meets the requirements of K.S.A.
9-2202,
and amendments thereto.;
(b) No person shall be employed
by a registrant without the prior
written approval of the commissioner if such
person employ any person
who has:
(1) Had a certificate of
license or registration denied, revoked, sus-
pended or refused renewal; or
(2) been convicted of any crime involving
fraud, dishonesty or deceit.;
(3) (c) delay closing
of a mortgage loan for the purpose of increasing
interest, costs, fees or charges payable by the
borrower;
(4) (d) misrepresent
the material facts or make false promises in-
tended to influence, persuade or induce an applicant for a
mortgage loan
or mortgagee to take a mortgage loan or cause or contribute to
misrep-
resentation by any person acting on the licensee's
behalf;
(5) (e) misrepresent
to or conceal from an applicant for a mortgage
loan or mortgagor, material facts, terms or conditions of a
transaction to
which the licensee or registrant is a party;
(6) (f) engage in any
transaction, practice or business conduct that is
not in good faith, or that operates a fraud upon any person in
connection
with the making of or purchase or sale of any mortgage
loan;
(7) (g) receive
compensation for rendering mortgage business services
where the licensee or registrant has otherwise acted as a real
estate broker
or agent in connection with the sale of the real estate which
secures the
mortgage transaction unless the licensee or registrant has
provided writ-
ten disclosure to the person from whom compensation is collected
that the
licensee or registrant is receiving compensation both for
mortgage busi-
ness services and for real estate broker or agent
services;
(8) (h) engage in any
fraudulent residential mortgage brokerage or
underwriting practices;
(9) (i) advertise,
display, distribute, broadcast or televise, or cause or
permit to be advertised, displayed, distributed, broadcast or
televised, in
any manner, any false, misleading or deceptive statement or
representa-
tion with regard to rates, terms or conditions for a mortgage
loan;
(10) (j) record a
mortgage if moneys are not available for the imme-
diate disbursal to the mortgagor unless, before that recording,
the licensee
informs the mortgagor in writing of a definite date by which
payment
shall be made and obtains the mortgagor's written permission for
the
delay; or
(11) (k) transfer,
assign or attempt to transfer or assign, a license or
registration to any other person.
Sec. 13. K.S.A. 2000 Supp. 9-2213
is hereby amended to read as
follows: 9-2213. (a) Within three business days of receipt a
registrant
licensee shall deposit all fees and money received from a
borrower prior
to the time a loan is consummated in an escrow account in a bank,
savings
bank, savings and loan association or credit union incorporated
under the
laws of this state, or organized under the laws of the United
States or
another state.
(b) For each borrower the
registrant licensee shall maintain a
separate
record of all money received for any service performed or to be
per-
formed, including any payment to a third party, setting forth:
(1) The date the money was received;
(2) the amount of money received;
(3) the date the money was deposited in
the escrow account; and
(4) the date, description, and
justification for each disbursement.
(c) Upon the request of a borrower, a
copy of the record required by
subsection (b) shall be provided to the borrower:
(1) Within five business days of
consummation of the loan; or
(2) within five business days of receipt
of written notice of the bor-
rower's intention to withdraw from the loan transaction.
Sec. 14. K.S.A. 2000 Supp. 9-2214
is hereby amended to read as
follows: 9-2214. All original documents provided to the
registrant licensee
by the borrower or at the expense of the borrower, including any
ap-
praisals, are the property of the borrower and at the borrower's
request,
shall be returned to the borrower without further expense if the
loan is
not consummated.
Sec. 15. K.S.A. 2000 Supp. 9-2215
is hereby amended to read as
follows: 9-2215. (a) A registrant licensee
shall provide written notice to
the commissioner within 10 business days of the occurrence of any
of the
following events:
(1) A change in the registrant's
main office address;
(2) (1) The
opening, closing or relocation of the principal
place of
business or any branch office of the registrant
located in this state;
(3) (2) a change
in the registrant's licensee's name or
legal entity
status; or
(4) (3) the
addition of an or loss of any loan originator,
owner, officer,
partner or director to the registrant's
business.
(b) The commissioner may request
additional information concerning
any written notice received pursuant to subsection (a) and
charge a rea-
sonable fee for any action required by the commissioner as a
result of
such notice and additional information.
Sec. 16. K.S.A. 2000 Supp. 9-2216
is hereby amended to read as
follows: 9-2216. (a) A registrant licensee
shall keep for at least 25 months
copies of all deposit receipts, canceled checks, trust
account records, re-
quired federal and state disclosures and other
relevant documents or cor-
respondence received or prepared by the licensee or
registrant in con-
nection with a loan or loan application and those records and
documents
required by the commissioner by rules and regulations adopted
pursuant
to K.S.A. 2000 Supp. 9-2209, and amendments thereto. If the
loan is not
serviced by a registrant licensee, the
retention period commences on the
date the loan is closed or, if the loan is not closed, the date of
the loan
application. If the loan is serviced by a
registrant licensee, the retention
period commences on the date the loan is paid in full or the date
the
registrant licensee ceases to service the
loan.
(b) All books, records and any other
documents held by the registrant
licensee shall be made available for examination and
inspection by the
commissioner or the commissioner's designee. Certified copies of
all re-
cords not kept within this state shall be delivered to the
commissioner
within three business days of the date such documents are
requested.
Sec. 17. K.S.A. 2000 Supp. 9-2220
is hereby amended to read as
follows: 9-2220. The provisions of K.S.A. 2000 Supp. 9-2201 through
9-
2220, and amendments thereto, and section 1, and amendments
thereto,
shall be known and may be cited as the Kansas mortgage business
act.
Sec. 18. K.S.A. 2000 Supp. 9-2201, 9-2202, 9-2203,
9-2204, 9-2205,
9-2206, 9-2207, 9-2208, 9-2209, 9-2211, 9-2212, 9-2213, 9-2214,
9-2215,
9-2216 and 9-2220 are hereby repealed.
Sec. 19. This act shall take effect and be in
force from and after
November 1, 2001, and its publication in the statute book.
Approved April 3, 2001.
__________