Brief (1)
SB 459, as amended, relates to mortgage business and mortgage loans. The bill adds two grounds upon which the Bank Commissioner may deny, suspend, revoke, or refuse to renew the registration of a mortgage business: a finding that an employee of an applicant or registrant was convicted of engaging in a mortgage banking business without authorization or of a similar offense in another state; or, if the applicant refuses to provide information required by the Commissioner.
The bill also empowers the Commissioner to require persons to file written statements taken under oath setting out facts concerning a violation of the mortgage banking laws and rules and regulations. The Commissioner is allowed to receive settlement payments from investigations and to use such moneys as the Commissioner may direct.
Finally, without the permission of the Commissioner, no person may be employed by a registrant under the law who has had a registration denied, revoked, suspended, or refused renewal.
The Senate Committee amendments: require that a copy of the acknowledgment form signed by the customer of a mortgage business be given to the customer; and change the effective date of the bill to publication in the Kansas Register.
Background
SB 459, as amended, was requested by the Bank Commissioner whose representative explained that the provisions of the bill clarify the authority of the Commissioner granted in the law in the 1999 Session regarding registrants and strengthen the power of the Commissioner to enforce the provisions of the law.
SB 459, as amended, was supported by the Kansas Association of Mortgage Brokers.
The fiscal note prepared by the Division of the Budget indicates that no fiscal impact would result from the 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