{"data":{"id":"us-ky/krs-286.8-010","jurisdiction":"us-ky","citation":"KRS 286.8-010","heading":"Definitions for subtitle.","body":"As used in this subtitle, unless the context otherwise requires:\n(1) \"Affiliate\" means any person who directly or indirectly through one (1) or more\nintermediaries, controls, is controlled by, or is under common control with another\nperson;\n(2) \"Alternate work location\":\n(a) Means a physical location, other than the principal office or a branch, at which\nthe employees of a licensee are authorized by the licensee to remotely engage\nin the mortgage lending process; and\n(b) May include a physical location, oth er than the principal office or a branch,\nwhere an employee:\n1. Completes mortgage-related activities if the location is not maintained\nor utilized for the purpose of conducting in -person mortgage lending\nbusiness; and\n2. Meets in person at the convenience  of the borrower on an infrequent or\nas-needed basis in order to complete the mortgage lending process if the\nlocation is not the employee's home;\n(3) \"Applicant\" means a person filing an application or renewal application for a\nlicense, registration, or claim of exemption under this subtitle;\n(4) \"Borrower\" means any person that seeks, applies for, or obtains a mortgage loan;\n(5) \"Branch\" or \"branches\":\n(a) Means any location, other than the mortgage loan company's or mortgage loan\nbroker's principal offic e, where the mortgage loan company, mortgage loan\nbroker, or its employees maintain a physical presence for the purpose of\nconducting business in the mortgage lending process, including the servicing\nof mortgage loans; and\n(b) Shall not include an alternate work location;\n(6) (a) \"Classroom\" means a physical classroom environment in which teachers and\nparticipants are physically present for the teaching of a course.\n(b) Courses taught through Internet, mail, or correspondence classes shall not be\nconsidered to be courses taught in a classroom;\n(7) \"Control\" means the power, directly or indirectly, to direct the management or\npolicies of a company, whether through ownershi p of securities, by contract, or\notherwise;\n(8) \"Criminal syndicate\" means five (5) or more persons collaborating to promote or\nengage in any pattern of residential mortgage fraud on a continuing basis;\n(9) \"Depository institution\" means a depository insti tution as defined in the Federal\nDeposit Insurance Act, 12 U.S.C. sec. 1813(c), and amendments thereto, and\nincludes any credit union;\n(10) \"Employ or use\" means to employ, utilize, or contract with a person or the person's\nemployees for the purpose of par ticipating in the mortgage lending process,\nincluding the servicing of mortgage loans;\n(11) \"Immediate family member\" means a spouse, child, sibling, parent, grandparent, or\ngrandchild;\n(12) \"Licensee\" means a person to whom a license has been issued;\n(13) \"Managing principal\" means a natural person who:\n(a) Meets the requirements of KRS 286.8-032(6); and\n(b) Agrees to actively participate in and be primarily responsible for the\noperations of a licensed mortgage loan broker;\n(14) \"Mortgage lending process\":\n(a) Means the process through which a person seeks or obtains a mortgage loan;\nand\n(b) Includes the solicitation, application, origination, negotiation of terms,\nprocessing, underwriting, signing, closing, and funding of a mortgage loan and\nthe services p rovided incident to a mortgage loan, including the appraisal of\nthe residential real property;\n(15) \"Mortgage loan\" means any loan primarily for personal, family, or household use\nthat is secured by a mortgage, deed of trust, or other equivalent consensual  security\ninterest on residential real property or any loan primarily for personal, family, or\nhousehold use that is secured by collateral that has a mortgage lien interest in\nresidential real property;\n(16) \"Mortgage loan broker\" means any person who for compensation or gain, or in the\nexpectation of compensation or other gain, received directly or indirectly, serves as\nan agent for any borrower in an attempt to obtain a mortgage loan, or holds oneself\nout as being able to do so;\n(17) \"Mortgage loan company\" means any person who directly or indirectly:\n(a) Makes, purchases, or sells mortgage loans, or holds oneself out as being able\nto do so; or\n(b) Services mortgage loans, or holds oneself out as being able to do so;\n(18) \"Mortgage loan originator\" means a natural person who:\n(a) 1. Is employed by a licensee;\n2. Receives compensation or gain, or expects to receive\ncompensation or gain; and\n3. Performs any one (1) or more of the following acts in the mortgage\nlending process:\na. Solicits, places, negotiates,  or offers to make a mortgage\nloan;\nb. Assists a borrower or prospective borrower with the\npreparation of documents necessary to obtain a mortgage\nloan;\nc. Explains, recommends, discusses, negotiates, or quot es rates,\nterms, and conditions of a mortgage loan with a borrower or\nprospective borrower, whether or not the borrower or\nprospective borrower makes or completes an application;\nd. Explains any term or aspect of any disclosure or agreement\ngiven at or aft er the time a mortgage loan application is\nreceived; or\ne. Takes a residential mortgage loan application; or\n(b) Is an independent contractor engaging in the mortgage lending process\nas a mortgage loan processor;\n(19) (a) \"Mortgage loan processor\" means a natural person who performs only clerical\nor support duties at the direction of and subject to the supervision and\ninstruction of a mortgage loan originator.\n(b) As used in this subsection, \"clerical or support duties\" means administrative\nfunctions such a s gathering information, requesting information, word\nprocessing, sending correspondence, or assembling files, and may include:\n1. The receipt, collection, distribution, and analysis of information\ncommon for the processing or underwriting of a residential  mortgage\nloan; or\n2. Any communication with a borrower to obtain the information necessary\nfor the processing or underwriting of a loan, to the extent that the\ncommunication does not include:\na. Taking a residential mortgage loan application;\nb. Assisting a borrower or prospective borrower with the preparation\nof documents necessary to obtain a mortgage loan;\nc. Offering or negotiating loan rates or terms; or\nd. Counseling consumers about residential mortgage loan rates or\nterms;\n(20) \"Nationwide Multistat e Licensing System and Registry\" means a mortgage\nlicensing system developed and maintained by the Conference of State Bank\nSupervisors and the American Association of Residential Mortgage Regulators;\n(21) \"Originate\" means to solicit, place, negotiate, of fer to make, or broker a mortgage\nloan;\n(22) \"Pattern of residential mortgage fraud\" means residential mortgage fraud that\ninvolves two (2) or more mortgage loans that have the same or similar intents,\nresults, accomplices, victims, or methods of commissio n or otherwise are\ninterrelated by distinguishing characteristics;\n(23) \"Physical location\" means any location where the mortgage lending process,\nincluding the servicing of mortgage loans, is conducted;\n(24) \"Record\" means any books of account or other bo oks, papers, journals, ledgers,\nstatements, instruments, documents, files, messages, writings, correspondence, or\nother internal data or information, made or received in the regular course of\nbusiness or otherwise, regardless of the mode in which it is recorded;\n(25) \"Registrant\" means a person to whom a registration has been issued;\n(26) \"Residential mortgage loan application\" means the submission of a borrower's\nfinancial information in anticipation of a credit decision, whether written or\ncomputer-generated, relating to a mortgage loan;\n(27) \"Residential real property\" means a dwelling as defined in the Federal Truth in\nLending Act, 15 U.S.C. sec. 1602(w), or any real property upon which is\nconstructed or intended to be constructed a dwelling as so defined;\n(28) \"Service\" or \"servicing\" means:\n(a) Receiving any scheduled periodic mortgage loan payments from a borrower,\nincluding amounts for escrow accounts or other fees or obligations related to\nthe mortgage loan, and making or crediting the payments to the mortgage loan\naccount, owner of the loan, or a third party assigned to receive said payments;\n(b) Maintaining accountings of principal, interest, and other accounts associated\nwith the servicing of mortgage loans and responding to borrower inquiries\nregarding the status of these loans or accounts;\n(c) Initiating, supervising, or conducting foreclosure proceedings and property\ndispositions in the case of default, except \"service\" or \"servicing\" shall not\ninclude licensed attorneys representing clients in such matters; or\n(d) In the case of a home equity conversion mortgage or reverse mortgage,\nmaking payments to the borrower;\n(29) \"Takes a residential mortgage loan application\" or \"taking a residential mortgage\nloan application\" means:\n(a) Recording the borrower's application information in any form for u se in a\ncredit decision; or\n(b) Receiving the borrower's application information in any form for use in a\ncredit decision;\n(30) \"Transact business in Kentucky\" or \"transacting business in Kentucky\" means to\nparticipate in any meaningful way in the mortgage  lending process, including the\nservicing of mortgage loans, with respect to any residential real property located in\nKentucky;\n(31) \"Unique identifier\" means a number or other identifier assigned by protocols\nestablished by the Nationwide Multistate Licensing System and Registry; and\n(32) \"Wholly owned subsidiary\" means a subsidiary that is entirely owned or controlled\nby another person.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52848","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:14Z","sha256":"2be7fd07f0814ee28b4180e547b63b248aa461a1b270961dafafa5e5ab2a2661","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.7-990","next":"us-ky/krs-286.8-012"},"notice":"GroundRules: Original legal text. Not legal advice."}