{"data":{"id":"us-ky/krs-286.8-255","jurisdiction":"us-ky","citation":"KRS 286.8-255","heading":"Registration with department required for mortgage loan originator --","body":"Renewals -- Continuing education requirement -- Background checks --\nOriginators subject to other laws -- Minimum standards for registration --\nMortgage loan processors not required to register -- Continuing education and\nstandards for processors -- Renewal of originator registration -- Limitation of\nloan origination services.\n(1) (a) No natural person shall transact business in Kentucky, either directly or\nindirectly, as a mortgage loan originator unless such mortgage loan originator:\n1. Is registered with the department;\n2. Complies with all applicable requirements of this subtitle; and\n3. Maintains a valid unique identifier issued by the Nationwide Multistate\nLicensing System and Registry.\n(b) The department shall maintain a database of all mortgage loan originators\noriginating mortgage loans on residential real property in Kentucky.\n(2) The application for registration shall:\n(a) Be on a form prescribed by the commissioner;\n(b) Be accompanied by a registration fee in the amount of fifty dollars ($50),\nwhich shall be used solely by the department to establish and maintain a\ndatabase of all mortgage loan originators and any excess funds shall be\nretained by the department and shall not lapse to the general fund; and\n(c) Contain such information as the commissioner deems necessary to carry out\nthe purposes of this subtitle.\n(3) (a) Applications for initial registrations of mortgage loan originators shall be\naccompanied by s atisfactory evidence that the applicant has successfully\ncompleted twenty (20) hours of prelicensing education courses related directly\nto the mortgage lending process, as approved and designated by the\ncommissioner.\n(b) For the purposes of paragraph (a) of this subsection:\n1. The prelicensing education courses approved and designated by the\ncommissioner shall:\na. Meet the minimum requirements set forth in Section 1505(c) of the\nS.A.F.E. Mortgage Licensing Act, 12 U.S.C. sec. 5104(c), and\namendments thereto; and\nb. Be reviewed and approved by the Nationwide Multistate Licensing\nSystem and Registry; and\n2. The commis sioner may accept as credit towards the completion of the\nprelicensing education requirements in this state, the completion of\nprelicensing education requirements in any other state so long as the\neducation has met the requirements set forth in this subsection.\n(4) (a) Applications for renewals of registration by registered mortgage loan\noriginators shall be accompanied by satisfactory evidence that the individual\nhas successfully met the continuing education requirements of KRS 286.8-260\nand by payment of a renewal fee in the amount of fifty dollars ($50).\n(b) The renewal fee shall be used solely by the department to establish and\nmaintain a database of all mortgage loan originators and any excess funds\nshall be retained by the department and shall not lapse to the general fund.\n(5) (a) A registration issued between January 1 and October 31 of the same calendar\nyear shall expire on December 31 of the same calendar year.\n(b) A registration issued between November 1 and December 31 of the same\ncalendar year shall expire on December 31 of the following calendar year.\n(c) Any registration that has expired may be reinstated by the commissioner upon\npayment of the annual renewal fee, and a reinstatement fee of two hundred\nfifty dollars ($250), within thirty (30) days of the expiration of the registration.\n(6) All mortgage loan originators subject to the registration requirements of this section\nshall also be subject to and comply with all applicable provisions of this subtitle.\n(7) (a) The commissioner shall require , as part of an application or renewal\napplication filed under this subtitle, including but not limited to applications\nor renewals for mortgage loan originators, the submission of:\n1. Background records checks, including but not limited to checks for state,\nfederal, and international criminal histories, civil or administrative\nrecords, and any other information as deemed necessary to comply with\nthe minimum requirements set forth in Section 1505 of the S.A.F.E.\nMortgage Licensing Act, 12 U.S.C. sec. 5104, and amendments thereto;\nand\n2. An independent credit report obtained from a consumer reporting agency\ndescribed in the Fair Credit Reporting Act, 15 U.S.C. sec. 1681a.\n(b) The cost of the background records checks and credit report shall be borne by\nthe applicant.\n(8) No mortgage loan originator shall be granted or shall be entitled to maintain a\nregistration unless he or she satisfies the following minimum standards for\nregistration:\n(a) The applicant has never had a loan originator's license or registrati on revoked\nin any governmental jurisdiction, except revocations that have been formally\nvacated or set aside shall not be deemed a revocation for the purposes of this\nsection;\n(b) The applicant has not been convicted of, pled guilty to, or pled nolo\ncontendere to a felony in any domestic, foreign, or military court:\n1. During the seven (7) year period preceding the date of the application for\nregistration or renewal of registration; or\n2. At any time preceding such date of application for registration or\nrenewal of registration, if such felony involved an act of fraud or\ndishonesty, a breach of trust, or money laundering;\n(c) The applicant has demonstrated financial responsibility, character, and general\nfitness such as to command the confidence of the commu nity and to warrant a\ndetermination that the loan originator will operate honestly, fairly, lawfully,\nand efficiently within the purposes of the subtitle;\n(d) The applicant has completed the prelicensing education requirement set forth\nin subsection (3) of this section;\n(e) The applicant has passed a qualified written test which satisfies the minimum\nrequirements set forth in Section 1505(d) of the S.A.F.E. Mortgage Licensing\nAct, 12 U.S.C. sec. 5104(d), and amendments thereto; and\n(f) The applicant holds o r is covered by a surety bond which satisfies the\nminimum requirements set forth in KRS 286.8-060.\n(9) (a) A mortgage loan processor shall not be required to maintain a registration, but\nthe processor's supervising mortgage loan company or mortgage loan br oker\nshall be required to:\n1. Provide the mortgage loan processor with the continuing education\nrequired under KRS 286.8-260; and\n2. Prior to hiring an applicant as a processor, perform an employee\nbackground check in accordance with uniform standards established by\nthe commissioner.\n(b) A mortgage loan company or mortgage loan broker shall provide proof of\ncompliance with this subsecti on to the commissioner upon demand,\ndemonstrating that:\n1. The applicant has not been convicted of, pled guilty to, or pled nolo\ncontendere to a felony in any domestic, foreign, or military court:\na. During the seven (7) year period preceding the date of t he\napplication; or\nb. At any time preceding the date of application, if the felony\ninvolved an act of fraud or dishonesty, a breach of trust, or money\nlaundering; and\n2. The applicant has demonstrated financial responsibility, character, and\ngeneral fitness sufficient to command the confidence of the community\nand to warrant a determination that the loan processor will operate\nhonestly, fairly, lawfully, and efficiently within the purposes of this\nsubtitle.\n(10) No mortgage loan originator shall be granted a registration renewal unless he or she\nsatisfies the following minimum standards for renewal:\n(a) The applicant has met and continues to meet the minimum standards set forth\nin subsection (8) of this section; and\n(b) The applicant has satisfied the annual  continuing education requirements set\nforth in KRS 286.8-260.\n(11) (a) The registration of any mortgage loan originator that fails to comply with the\nminimum standards for registration renewal set forth in this section shall\nexpire and shall promptly be deemed surrendered to the commissioner without\ndemand.\n(b) The commissioner may adopt procedures and requirements for the\nreinstatement of expired registrations consistent with the standards established\nby the Nationwide Multistate Licensing System and Registry.\n(12) Mortgage loan originators engaging in any of the activities set forth in KRS 286.8 -\n010(18)(a) shall provide loan origination services to not more than one (1) mortgage\nloan company or mortgage loan broker at a time.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52858","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:14Z","sha256":"5b79b181fbc7a6794ffa6e5af46b0febbef5f087e0adb0e8df82e344431c16d0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.8-250","next":"us-ky/krs-286.8-256"},"notice":"GroundRules: Original legal text. Not legal advice."}