Brief (1)
SB 444 concerns mortgage guaranty insurance. The bill allows such insurance to be written on a mortgage loan for 100 percent of the fair market value of the real estate. Current law allows for insurance up to 97 percent of the fair market value of the real estate.
Background
S.B. 444 was recommended by the representative for the Mortgage Guaranty Insurance Corporation who explained that most states already allow loans to be insured at the 100 percent level. Since more and more loans are being made above the 97 percent level, many at 100 percent of fair market value, raising the cap on mortgage guaranty insurance from 97 to 100 percent will provide home buying opportunities to a greater number of persons.
The bill was supported by the Kansas Insurance Commissioner, the Kansas Bankers Association, and Heartland Community Bankers Association.
The Kansas Insurance Department, the Office of the State Bank Commissioner, and the Kansas Real Estate Commission indicated to the Budget Director that there would be no fiscal effect from passage of the bill.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html