Brief ⁽¹⁾

HB 2691, as amended, concerns the Uniform Consumer Credit Code. The bill:

• Amends the definition of "appraised value" by deleting the words "the greater of" to make clear only one appraisal is required on property which is the subject of a high loan-to-value mortgage;



• Amends the definition of "Code mortgage rate" by deleting "31" and inserting "61" to reflect the correct number of days to be used in the formula for determining the code mortgage interest rate;



• Clarifies that the application fee paid for licensure under the Code is nonrefundable and nonassignable;



• Clarifies that the interest rate on a closed end loan may be 36 percent on the first $860 financed and 21 percent on the balance of the loan which exceeds $860;



• Corrects the title of the federal act referenced in the Code as the Consumer Credit Protection Act; and



• Changes from January 31 to April 30 the date for payment of the fee for each business location licensed in the state.

The House Committee amendments were technical and change the effective date of the bill to publication in the Kansas Register.

Background

HB 2691 was requested by the Acting Deputy Commissioner of Consumer and Mortgage Lending who explained that the bill is a general cleanup bill for the massive rewrite of the Code which took place in the 1999 Session.

The bill was supported by the Kansas Association of Financial Services.

The fiscal note prepared by the Division of the Budget indicates no fiscal effect would result 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