KRS 286.8-010: Definitions for subtitle.

As used in this subtitle, unless the context otherwise requires:

(1) "Affiliate" means any person who directly or indirectly through one (1) or more

intermediaries, controls, is controlled by, or is under common control with another

person;

(2) "Alternate work location":

(a) Means a physical location, other than the principal office or a branch, at which

the employees of a licensee are authorized by the licensee to remotely engage

in the mortgage lending process; and

(b) May include a physical location, oth er than the principal office or a branch,

where an employee:

1. Completes mortgage-related activities if the location is not maintained

or utilized for the purpose of conducting in -person mortgage lending

business; and

2. Meets in person at the convenience of the borrower on an infrequent or

as-needed basis in order to complete the mortgage lending process if the

location is not the employee's home;

(3) "Applicant" means a person filing an application or renewal application for a

license, registration, or claim of exemption under this subtitle;

(4) "Borrower" means any person that seeks, applies for, or obtains a mortgage loan;

(5) "Branch" or "branches":

(a) Means any location, other than the mortgage loan company's or mortgage loan

broker's principal offic e, where the mortgage loan company, mortgage loan

broker, or its employees maintain a physical presence for the purpose of

conducting business in the mortgage lending process, including the servicing

of mortgage loans; and

(b) Shall not include an alternate work location;

(6) (a) "Classroom" means a physical classroom environment in which teachers and

participants are physically present for the teaching of a course.

(b) Courses taught through Internet, mail, or correspondence classes shall not be

considered to be courses taught in a classroom;

(7) "Control" means the power, directly or indirectly, to direct the management or

policies of a company, whether through ownershi p of securities, by contract, or

otherwise;

(8) "Criminal syndicate" means five (5) or more persons collaborating to promote or

engage in any pattern of residential mortgage fraud on a continuing basis;

(9) "Depository institution" means a depository insti tution as defined in the Federal

Deposit Insurance Act, 12 U.S.C. sec. 1813(c), and amendments thereto, and

includes any credit union;

(10) "Employ or use" means to employ, utilize, or contract with a person or the person's

employees for the purpose of par ticipating in the mortgage lending process,

including the servicing of mortgage loans;

(11) "Immediate family member" means a spouse, child, sibling, parent, grandparent, or

grandchild;

(12) "Licensee" means a person to whom a license has been issued;

(13) "Managing principal" means a natural person who:

(a) Meets the requirements of KRS 286.8-032(6); and

(b) Agrees to actively participate in and be primarily responsible for the

operations of a licensed mortgage loan broker;

(14) "Mortgage lending process":

(a) Means the process through which a person seeks or obtains a mortgage loan;

and

(b) Includes the solicitation, application, origination, negotiation of terms,

processing, underwriting, signing, closing, and funding of a mortgage loan and

the services p rovided incident to a mortgage loan, including the appraisal of

the residential real property;

(15) "Mortgage loan" means any loan primarily for personal, family, or household use

that is secured by a mortgage, deed of trust, or other equivalent consensual security

interest on residential real property or any loan primarily for personal, family, or

household use that is secured by collateral that has a mortgage lien interest in

residential real property;

(16) "Mortgage loan broker" means any person who for compensation or gain, or in the

expectation of compensation or other gain, received directly or indirectly, serves as

an agent for any borrower in an attempt to obtain a mortgage loan, or holds oneself

out as being able to do so;

(17) "Mortgage loan company" means any person who directly or indirectly:

(a) Makes, purchases, or sells mortgage loans, or holds oneself out as being able

to do so; or

(b) Services mortgage loans, or holds oneself out as being able to do so;

(18) "Mortgage loan originator" means a natural person who:

(a) 1. Is employed by a licensee;

2. Receives compensation or gain, or expects to receive

compensation or gain; and

3. Performs any one (1) or more of the following acts in the mortgage

lending process:

a. Solicits, places, negotiates, or offers to make a mortgage

loan;

b. Assists a borrower or prospective borrower with the

preparation of documents necessary to obtain a mortgage

loan;

c. Explains, recommends, discusses, negotiates, or quot es rates,

terms, and conditions of a mortgage loan with a borrower or

prospective borrower, whether or not the borrower or

prospective borrower makes or completes an application;

d. Explains any term or aspect of any disclosure or agreement

given at or aft er the time a mortgage loan application is

received; or

e. Takes a residential mortgage loan application; or

(b) Is an independent contractor engaging in the mortgage lending process

as a mortgage loan processor;

(19) (a) "Mortgage loan processor" means a natural person who performs only clerical

or support duties at the direction of and subject to the supervision and

instruction of a mortgage loan originator.

(b) As used in this subsection, "clerical or support duties" means administrative

functions such a s gathering information, requesting information, word

processing, sending correspondence, or assembling files, and may include:

1. The receipt, collection, distribution, and analysis of information

common for the processing or underwriting of a residential mortgage

loan; or

2. Any communication with a borrower to obtain the information necessary

for the processing or underwriting of a loan, to the extent that the

communication does not include:

a. Taking a residential mortgage loan application;

b. Assisting a borrower or prospective borrower with the preparation

of documents necessary to obtain a mortgage loan;

c. Offering or negotiating loan rates or terms; or

d. Counseling consumers about residential mortgage loan rates or

terms;

(20) "Nationwide Multistat e Licensing System and Registry" means a mortgage

licensing system developed and maintained by the Conference of State Bank

Supervisors and the American Association of Residential Mortgage Regulators;

(21) "Originate" means to solicit, place, negotiate, of fer to make, or broker a mortgage

loan;

(22) "Pattern of residential mortgage fraud" means residential mortgage fraud that

involves two (2) or more mortgage loans that have the same or similar intents,

results, accomplices, victims, or methods of commissio n or otherwise are

interrelated by distinguishing characteristics;

(23) "Physical location" means any location where the mortgage lending process,

including the servicing of mortgage loans, is conducted;

(24) "Record" means any books of account or other bo oks, papers, journals, ledgers,

statements, instruments, documents, files, messages, writings, correspondence, or

other internal data or information, made or received in the regular course of

business or otherwise, regardless of the mode in which it is recorded;

(25) "Registrant" means a person to whom a registration has been issued;

(26) "Residential mortgage loan application" means the submission of a borrower's

financial information in anticipation of a credit decision, whether written or

computer-generated, relating to a mortgage loan;

(27) "Residential real property" means a dwelling as defined in the Federal Truth in

Lending Act, 15 U.S.C. sec. 1602(w), or any real property upon which is

constructed or intended to be constructed a dwelling as so defined;

(28) "Service" or "servicing" means:

(a) Receiving any scheduled periodic mortgage loan payments from a borrower,

including amounts for escrow accounts or other fees or obligations related to

the mortgage loan, and making or crediting the payments to the mortgage loan

account, owner of the loan, or a third party assigned to receive said payments;

(b) Maintaining accountings of principal, interest, and other accounts associated

with the servicing of mortgage loans and responding to borrower inquiries

regarding the status of these loans or accounts;

(c) Initiating, supervising, or conducting foreclosure proceedings and property

dispositions in the case of default, except "service" or "servicing" shall not

include licensed attorneys representing clients in such matters; or

(d) In the case of a home equity conversion mortgage or reverse mortgage,

making payments to the borrower;

(29) "Takes a residential mortgage loan application" or "taking a residential mortgage

loan application" means:

(a) Recording the borrower's application information in any form for u se in a

credit decision; or

(b) Receiving the borrower's application information in any form for use in a

credit decision;

(30) "Transact business in Kentucky" or "transacting business in Kentucky" means to

participate in any meaningful way in the mortgage lending process, including the

servicing of mortgage loans, with respect to any residential real property located in

Kentucky;

(31) "Unique identifier" means a number or other identifier assigned by protocols

established by the Nationwide Multistate Licensing System and Registry; and

(32) "Wholly owned subsidiary" means a subsidiary that is entirely owned or controlled

by another person.