KRS 286.8-030: Transaction of business prohibited without license -- Effect of issuance of

license -- Unique identifier.

(1) (a) It is unlawful for any person to transact business in Kentucky, either directly

or indirectly, as a mortgage loan company or mortgage loan broker if the

mortgage loan company or mortgage loan broker is not licensed in accordance

with the requirements of this subtitle, unless that person is exempt under KRS

286.8-020 and, if required by KRS 286.8 -020(3) has timely filed a completed

application for a claim of exemption, and the filed application for a claim of

exemption has been approved by the commissioner.

(b) It is unlawful for any natural person to make a loan under KRS 286.8 -020(10)

without making the disclosure required by KRS 286.8-020(7).

(c) It is unlawful for any natural person to transact business in Kentucky, either

directly or indirectly, as a mortgage loan originator, unless otherwise

exempted, if the mortgage loan originator is not registered in accordance with

KRS 286.8-255.

(d) It is unlawful for any mortgage loan company or mortgage loan broker to

employ or use a mortgage loan originator if the mortgage loan originator is not

registered in accordance with KRS 286.8-255 or otherwise exempted.

(e) It is unlawful for any mortg age loan company to employ or use, with or

without compensation, a mortgage loan broker if the mortgage loan broker is

not licensed in accordance with the requirements of this subtitle unless that

person is exempt under KRS 286.8-020 and, if required by KRS 286.8-020(3),

has timely filed a completed application for a claim of exemption, and the

filed application for a claim of exemption has been approved by the

commissioner.

(2) Neither the fact that a license or registration has been issued nor the fact th at any

person, business, or company is effectively registered or licensed, constitutes a

finding by the commissioner that any document filed under this subtitle is true,

complete, and not misleading. Nor does such fact directly or indirectly imply

approval of the registrant or licensee by the commissioner or the Commonwealth of

Kentucky. It is unlawful to make or cause to be made to any prospective customer

or client any representation inconsistent with this subsection.

(3) Any mortgage loan company or mort gage loan broker who willfully transacts

business in Kentucky in violation of subsection (1) of this section shall have no

right to collect, receive, or retain any interest or charges whatsoever on a loan

contract, but the unpaid principal of the loan shall be paid in full.

(4) Each solicited, attempted, or closed loan shall constitute a separate violation of this

section.

(5) The unique identifier, name, and signature of any person originating a mortgage

loan shall be clearly shown on the mortgage loan application. It shall be unlawful to

make or cause to be made any representations on a mortgage loan application that

are inconsistent with this subsection. The unique identifier shall also be displayed

on solicitations or advertisements, including business c ards or Web sites, of all

persons holding themselves out as being able to originate mortgage loans in

Kentucky, and any other document as established by rule, regulation, or order of the

commissioner.