{"data":{"id":"us-ky/krs-286.8-120","jurisdiction":"us-ky","citation":"KRS 286.8-120","heading":"Fees and charges in addition to interest -- Letters of commitment --","body":"Failure to fulfill terms constitutes default.\n(1) Every mortgage loan company may require borrowers to pay all necessary and\nreasonable expenses incurred in connection with the mak ing, closing, disbursing,\nextending, readjusting, or renewing of loans. Without limiting the generality of the\nforegoing, such expenses may include appraisal, attorneys' fees, abstract, recording\nand registration fees, title examination, title insurance, m ortgage insurance, credit\nreport, survey, drawing of papers, origination fees, loan closing costs, and taxes or\ncharges imposed upon or in connection with the making and reporting of any\nmortgage.\n(2) Every mortgage loan company also may require the borrow ers to pay the cost of all\nother necessary and incidental services rendered by the mortgage loan company or\nby others in connection with loans in reasonable amounts. Without limiting the\ngenerality of the foregoing, such costs may include the cost of servi ces of\ninspectors, engineers, and architects.\n(3) Such initial charges as described in subsections (1) and (2) of this section may be\ncollected by the mortgage loan company from the borrower and paid to any person\nrendering such services, or paid directly by the borrower.\n(4) In lieu of such initial charges to cover such expenses and costs as described in\nsubsections (1) and (2) of this section, a mortgage loan company may make a\nreasonable charge, part or all of which may be retained by the mortgage loan\ncompany which renders such service, or part or all of which may be paid to others\nwho render such services.\n(5) The fees and charges authorized by this section shall be in addition to interest\nauthorized by law, and shall not be deemed to be a part of the i nterest collected or\nagreed to be paid on such loans within the meaning of any law of this\nCommonwealth which limits the rate of interest which may be exacted in any\ntransaction.\n(6) No person shall receive any fee or other compensation of any kind in conn ection\nwith procuring any loan, except for services actually rendered as above provided,\nand in no event shall a mortgage loan company or mortgage loan broker require the\npayment of a fee greater than one hundred dollars ($100) as a condition to\nsubmitting a loan application unless the commissioner shall otherwise prescribe by\nrule.\n(7) All \"letters of commitment,\" or any other contracts or agreements between\nprospective borrowers and a mortgage loan company or a loan broker, where the\nborrowers employ serv ices, for a fee or commission, to obtain a loan commitment\nor funding from a lending institution shall indicate the terms and conditions thereof,\nincluding a full and detailed description of the services the broker or company\nundertakes to perform, a specific statement of the circumstances in which the broker\nor company will be entitled to obtain or retain consideration and the period that\nsuch agreement shall remain in effect.\n(8) Failure on the part of any party, with the exception of the borrower, to ful fill the\nterms of any loan commitment, letter of commitment, agreement, or contract for the\nloan of money within the time and on such terms specified therein, or the failure to\nmake a bona fide effort to secure a loan after receiving a fee for such service , shall\nconstitute default by the mortgage loan company and any other person so in default;\nand any person damaged by such default may sue at law or equity for damages,\nreasonable attorneys' fees and interest at the legal rate of interest under KRS\n360.010. Every cause of action for damages under this subsection survives the death\nof any person who might have been a plaintiff or defendant. No person may sue\nunder this subsection more than five (5) years after any act constituting default.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14870","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:14Z","sha256":"bdb18ab7117063086e68eedce174f635ae0abb5bcd6adee20bacec391b69c0bf","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.8-110","next":"us-ky/krs-286.8-125"},"notice":"GroundRules: Original legal text. Not legal advice."}