KRS 286.8-285: Participation in Nationwide Multistate Licensing System and Registry --

Duties -- Reporting.

(1) (a) In addition to other duties imposed upon the commissioner in this subtitle, the

commissioner shall be authorized to:

1. Participate in the Nationwide Multistate Licensing System and Registry;

and

2. Implement and comply with the minimum requirements set forth in the

S.A.F.E. Mortgage Licensing Act, 12 U.S.C. sec. 5101 et seq., as

amended.

(b) For such purpose, the commissioner is authorized t o waive or modify, in

whole or in part, by regulation or by order, any or all of the requirements of

this subtitle and to establish new requirements as reasonably necessary to

carry out the purpose of this section.

(c) The commissioner shall have authority to establish relationships or contracts

with other governmental agencies, the Nationwide Multistate Licensing

System and Registry, or entities affiliated with the system that are necessary to

carry out the purpose of this section.

(d) The commissioner may use the Nationwide Multistate Licensing System and

Registry as an agent for receiving, requesting, and distributing information to

and from any source so directed by the commissioner.

(2) The commissioner shall establish a process whereby licensees may ch allenge

information entered into the Nationwide Multistate Licensing System and Registry

by the commissioner.

(3) The commissioner shall annually request audited financial reports, including

inquiring as to the budget and fees collected, both proposed and actual, from the

Nationwide Multistate Licensing System and Registry.

(4) The commissioner shall annually request any nonconfidential protocols or reports

for the security and safeguarding of personal information maintained by the

Nationwide Multistate Licensing System and Registry, including the following:

(a) Inquiring as to whether the system has implemented and complied with the

data security guidelines set forth in the Gramm -Leach-Bliley Act, 15 U.S.C.

sec. 6801;

(b) Inquiring as to the results of any nonconfidential periodic data protection

audits that the system may conduct; and

(c) Inquiring as to whether any security breaches have occurred resulting in the

substantial likelihood that personal information may be misused or stolen.

(5) The commissioner shall annually request from the Nationwide Multistate Licensing

System and Registry the following statistical information, if available, relating to

the examinations taken by applicants seeking registration as a loan originator in

Kentucky during the preceding calendar year:

(a) The total number of tested individuals, along with any relevant demographic

information available such as race, ethnicity, or gender;

(b) The total number of individuals who received a passing score on the

examination, along with any relevant demographic information available such

as race, ethnicity, or gender;

(c) The total number of individuals who did not receive a passing score on the

examination, along with any relevant demographic information available such

as race, ethnicity, or gender; and

(d) All mean, average, or scaled scoring data.

(6) When requested by the General Assembly, the commissioner shall review and

report to the General Assembly the content of any information received from the

Nationwide Multista te Licensing System and Registry pursuant to subsection (3),

(4), or (5) of this section.

(7) Notwithstanding any provision to the contrary in this subtitle or in KRS Chapter 61,

the commissioner shall regularly report violations of this subtitle, as well as

enforcement actions and other relevant information, to the Nationwide Multistate

Licensing System and Registry.