Brief ⁽¹⁾

SB 445, as amended, concerns two sections of the Uniform Consumer Credit Code, statutes which govern credit transactions for personal, family, or household purposes. In the definition section of the Code, the definition of "Appraised value" is clarified to reflect that only one appraisal is necessary, i.e., either the tax assessor appraisal or an appraisal completed by a licensed or certified appraiser.

Additionally, the section of the Code dealing with the regulation of high loan-to-value mortgages is amended to require only a three-day rather than a five-day notice regarding high loan-to-value mortgages and of the availability of consumer credit counseling.

The Senate Committee amendment reinstates the provision that ties the appraisal and the notice only to high loan-to-value mortgages.

The House Committee amendments are technical.

Background

SB 445 was requested by the Kansas Association of Financial Services whose representative explained that the current statute seemed to require two appraisals in order to determine which was the greater. The bill clarifies that only one appraisal is necessary. The Association agreed to the Committee amendment suggested by the Acting Deputy Commissioner of Consumer and Mortgage Lending.

The fiscal impact note prepared by the Division of the Budget indicates passage of the bill will have no fiscal effect.

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