{"data":{"id":"us-ky/krs-286.8-020","jurisdiction":"us-ky","citation":"KRS 286.8-020","heading":"Exemptions.","body":"(1) The following mortgage loan companies and mortgage loan brokers shall be subject\nto KRS 286.8-046, 286.8-180, 286.8-220(1), and subsections (12), (13), and (14) of\nthis section, but shall be exempt from all other provisions of this subtitle:\n(a) Any person  duly licensed, chartered, and otherwise subject to regular\nexamination at least once every two (2) years by a state or federal financial\ninstitution regulatory agency under the laws of this state or any other state or\nthe United States as a bank, bank hol ding company, trust company, credit\nunion, savings and loan association, savings and loan association holding\ncompany, service corporation subsidiary of a savings and loan association,\ninsurance company, real estate investment trust as defined in 26 U.S.C.  sec.\n856, an institution of the farm credit system organized under the Farm Credit\nAct of 1971 as amended, or any wholly owned subsidiary of any such person\nif the subsidiary is subject to regular examination at least once every two (2)\nyears by a state or federal financial institution regulatory agency;\n(b) Any natural person who makes a mortgage loan secured by a dwelling that\nserved as the natural person's residence, unless the natural person is\ncompensated in connection with that transaction by a mortgage loan company,\nmortgage loan broker, or other mortgage loan originator, or by an agent of\nsuch company, broker, or other originator;\n(c) Any natural person who makes a mortgage loan to an immediate family\nmember of the natural person unless the natural person is compensated in\nconnection with that transaction by a mortgage loan company, mortgage loan\nbroker, or other mortgage loan originator, or by an agent of such company,\nbroker, or other originator;\n(d) Any person other than a natural person, includin g any affiliate of that person,\nthat makes in the aggregate no more than four (4) mortgage loans within a\ncalendar year with its own funds and secured by residential real property\nowned by the person making the mortgage loan, provided that the mortgage\nloan is made without the intent to resell the mortgage loan, and provided that\nthe person does not hold itself out to the public as being primarily in the\nmortgage loan business;\n(e) The United States of America; the Commonwealth of Kentucky; any other\nstate, district, territory, commonwealth, or possession of the United States of\nAmerica; any city, county, or other political subdivision; and any agency,\ndivision, or corporate instrumentality of any of the foregoing;\n(f) The Federal National Mortgage Association (FNMA), the Federal Home Loan\nMortgage Corporation (FHLMC), and the Government National Mortgage\nAssociation (GNMA);\n(g) Any mortgage loan company or mortgage loan broker making or brokering a\nmortgage loan involving housing initially transferred by cer tificate of title\nunder KRS Chapter 186A;\n(h) A consumer loan company licensed under Subtitle 4 of this chapter whose\nprimary business is originating consumer loans as provided under Subtitle 4\nof this chapter or any wholly owned subsidiary of such a consu mer loan\ncompany, except that they shall be subject to the prohibited acts of KRS\n286.8-220(2)(e) and (f) and 286.8-110(4); and\n(i) A nonprofit organization that is recognized as tax -exempt under 26 U.S.C.\nsec. 501(c)(3) and authorized to do business in th is Commonwealth, and that\nhas affordable housing as a primary purpose in its operations.\n(2) The following shall be exempt from the licensing provisions of this subtitle and the\nexamination provisions of KRS 286.8 -170 and 286.8 -180, unless it appears on\ngrounds satisfactory to the commissioner that an examination is necessary, but shall\notherwise be subject to all other provisions of this subtitle:\n(a) A mortgage loan company or mortgage loan broker approved and regulated\nby the United States Department of Housing and Urban Development to\nperform business in this Commonwealth; and\n(b) Any branch of  a mortgage loan company or mortgage loan broker listed in\nparagraph (a) of this subsection, provided the branch is approved and\nregulated by the United States Department of Housing and Urban\nDevelopment to perform business in this Commonwealth.\n(3) Any no nprofit organization, mortgage loan company, mortgage loan broker, or\nbranch thereof relying upon an exemption under subsection (1)(i) or (2)(a) or (b) of\nthis section shall file with the commissioner a written application for a claim of\nexemption. The commissioner shall approve an application for an exemption that is\ntimely filed and meets the requirements of this subtitle. The period of exemption\nshall be from January 1 through December 31, and the exemption shall expire on\nDecember 31 of the same calenda r year. Every person granted an exemption under\nthis section shall file a written application for a new exemption on an annual basis.\nThe application shall be received by the commissioner on or before December 31 of\nthe same calendar year. A written application for a partial-year exemption shall also\nexpire on December 31 of the same calendar year that the written application for an\nexemption is granted.\n(4) Any mortgage loan company, mortgage loan broker, or branch thereof relying upon\nan exemption under s ubsection (2)(a) or (b) of this section shall fund or broker a\nminimum of twelve (12) Federal Housing Administration -insured loans on\nKentucky residential real properties each year in order to maintain its exemption.\n(5) Any mortgage loan company, mortgage loan broker, or branch thereof relying upon\nan exemption under subsection (2)(a) or (b) of this section who ceases to be\napproved or regulated by the United States Department of Housing and Urban\nDevelopment shall notify the commissioner, in writing, with in ten (10) days after it\nceases to be approved or regulated.\n(6) Any person listed in subsection (1)(a), (b), (c), (d), (e), (f), (g), or (h) of this section\nshall not be required to file with the commissioner a claim of exemption.\n(7) (a) Any natural per son making a loan under subsection (10) of this section shall\nmake the following disclosure, on a separate sheet of paper in minimum\neighteen (18) point type, to the borrower:\nDISCLOSURE\n(Name and address of lender) is not licensed or regulated by the Ke ntucky\nDepartment of Financial Institutions.\n(Name of lender) is making this mortgage loan with his or her own funds, for\nthe person's own investment, without intent to resell the mortgage loan.\n(The phone number and address of the Kentucky Department of  Financial\nInstitutions.)\n(b) A copy of the disclosure, signed by the borrower, shall be maintained by the\nnatural person for a period not to exceed three (3) years after the date the\nmortgage loan is paid in full.\n(8) Any mortgage loan company, mortgage loan broker, or branch thereof relying upon\nan exemption under subsection (2)(a) or (b) of this section shall provide a list of\nfunded or brokered Federal Housing Administration -insured loans from December\n1 of the previous calendar year to November 30 of t he current calendar year to the\ncommissioner by December 31 of each year on a form prescribed by the\ncommissioner.\n(9) Any mortgage loan company, mortgage loan broker, or branch thereof applying for\nan exemption under subsection (2)(a) or (b) of this section shall not be approved for\nan exemption under subsection (2)(a) or (b) of this section unless the mortgage loan\ncompany, mortgage loan broker, or branch thereof has:\n(a) Held a mortgage loan company or mortgage loan broker license or registration\nfor fiv e (5) consecutive years prior to the filing of the application for an\nexemption under this section with the commissioner; or\n(b) Been approved and regulated by the United States Housing and Urban\nDevelopment to conduct business in the mortgage lending proc ess for five (5)\nconsecutive years prior to the filing of the application for an exemption under\nthis section with the commissioner.\n(10) Any natural person not exempted in subsection (1)(b) or (c) of this section who\nmakes a mortgage loan with his or her own funds for the person's investment\nwithout the intent to resell the mortgage loan shall be exempt from the provisions of\nthis subtitle except for the following:\n(a) Examination provisions of KRS 286.8 -170 and 286.8-180 when it appears on\ngrounds satisfactory to the commissioner that an examination is necessary;\n(b) Disclosure requirements of subsection (7) of this section;\n(c) Any investigation and enforcement provisions of this subtitle including KRS\n286.8-170(7), and KRS 286.8-046, 286.8-090, 286.8-190, and 286.8-990;\n(d) Prohibited acts under KRS 286.8-125 and 286.8-220; and\n(e) Registration and regulatory requirements of KRS 286.8-255.\n(11) No person shall hold both a claim of exemption and a license granted under this\nsubtitle.\n(12) Notwithstanding a ny provisions to the contrary set forth in this subtitle, every\nmortgage loan company and mortgage loan broker shall make available and grant\naccess to the commissioner or an examiner of the commissioner the records in its\npossession or control that are subject to the provisions of this subtitle.\n(13) Notwithstanding any provisions to the contrary set forth in this subtitle, no\nmortgage loan company or mortgage loan broker shall impede the commissioner or\nan examiner of the commissioner from interviewing an y person regarding any\npotential violations of this subtitle.\n(14) Notwithstanding any provisions to the contrary set forth in this subtitle, every\nmortgage loan company and mortgage loan broker that employs or utilizes the\ndirect services of a mortgage lo an originator subject to the registration and\nregulatory requirements of KRS 286.8 -255 shall complete and timely submit to the\nNationwide Multistate Licensing System and Registry an annual report of\ncondition, which shall be in such form and contain such i nformation as the\nNationwide Multistate Licensing System and Registry may require, along with any\nother information which may be required by the commissioner.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55170","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:14Z","sha256":"00121a05bd4eeb5d6d10b09213feaae6f8e2173575dae67df63bc8da830ac9da","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.8-012","next":"us-ky/krs-286.8-030"},"notice":"GroundRules: Original legal text. Not legal advice."}