{"data":{"id":"us-ky/krs-286.8-125","jurisdiction":"us-ky","citation":"KRS 286.8-125","heading":"Limitation on total net income of loan originator -- Definitions for","body":"section.\n(1) (a) Except as provided in paragraph (b) of this subsection, it shall be unlawful for\nany licensee or person holding a claim of exemption to originate a loan\nsecured by a mortgage on residential real property in Kentucky if the total net\nincome generated by the licensee or person exceeds the greater of the\nfollowing:\n1. Two thousand dollars ($2,000); or\n2. Four percent (4%) of the total loan amount.\n(b) Paragraph (a) of this subsection shall not apply to a loan for which the total\npoints and fees on the loan do not exceed the threshold set forth in 12 C.F.R.\nsec. 1026.43(e)(3), as amended.\n(2) As used in this section, unless the context requires otherwise:\n(a) \"Total loan amount\" means the amount financed in the mortgage loan less the\ntotal net income generated by the:\n1. Originating licensee or person; or\n2. Affiliate of the originating licensee or person; and\n(b) \"Total net income\":\n1. Means any and all fees, income, or compensation of any kind collected,\nreceived, or charged by:\na. The licensee or person holding a claim of exemption; or\nb. An affiliate of the licensee or person holding a claim of\nexemption;\n2. Includes but is not limite d to origination fees, broker fees, lender fees\nand discount points if retained by the originating licensee or person as\nincome, processing fees, administrative fees, document preparation fees,\nyield spread premiums, servicing release premiums, and financi al\ncounseling fees; and\n3. Does not include:\na. Interest on the mortgage loan itself; or\nb. Fees paid to compensate unaffiliated third parties.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57404","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:14Z","sha256":"0c5d8d54ef0b6a7b94b6289991d746497881434d81b76eb8a196a04a83f3e206","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.8-120","next":"us-ky/krs-286.8-130"},"notice":"GroundRules: Original legal text. Not legal advice."}