{"data":{"id":"us-ky/krs-286.8-295","jurisdiction":"us-ky","citation":"KRS 286.8-295","heading":"Mortgage loan company and mortgage loan broker to exercise control","body":"over operations, employees, and company affairs -- Requirements for alternate\nwork location.\n(1) As used in this section, \"employee\" shall include a mortgage loan originator\nengaged as an independent contractor.\n(2) (a) Every mortgage loan company and mortgage loan broker shall exercise proper\nsupervision and control over the operations, employees, and affairs of its\ncompany.\n(b) A mortgage loan company or mortgage loan broker shall supervise and control\nall employees acting as a mortgage loan originator on behalf of the mortgage\nloan company or mortgage loan broker.\n(3) A licensee that allows employees to engage in the mortgage lending process from an\nalternate work location shall:\n(a) Exercise proper supervision and control over the employees;\n(b) Have written policies and procedures in place that ensure a safe, secure system\nfor the mortgage lending process;\n(c) Oversee compliance, and require all employees to comply, with t he policies\nand procedures referenced in paragraph (b) of this subsection;\n(d) Employ appropriate risk-based monitoring and oversight processes;\n(e) Ensure that:\n1. Customer interactions and communications about consumer accounts are\nin compliance with fed eral and state information security requirements,\nincluding applicable provisions of:\na. The Gramm -Leach-Bliley Act of 1999, Pub. L. No. 106 -102, as\namended; and\nb. The Federal Trade Commission's Safeguards Rule, set forth in 16\nC.F.R. pt. 314;\n2. Any employee that engages in the mortgage lending process at an\nalternate work location accesses the company's secure systems,\nincluding a cloud -based system, directly from any out -of-office device\nvia a virtual private network (VPN) or a comparable system  that ensures\nsecure connectivity and requires passwords or other forms of\nauthentication to access;\n3. Appropriate security updates, patches, or other alterations to the security\nof all devices used at an alternate work location are installed and\nmaintained;\n4. Any employee that engages in the mortgage lending process at an\nalternate work location agrees to comply with the licensee's processes\nestablished under paragraph (d) of this subsection; and\n5. The Nationwide Multistate Licensing System and Registry  record of a\nmortgage loan originator that works from an alternate work location\ndesignates a properly licensed location as the mortgage loan originator's\nofficial work station;\n(f) Have the ability to:\n1. Remotely lock or erase company-related contents of any device; or\n2. Otherwise remotely limit all access to the company's secure systems; and\n(g) At least annually:\n1. Certify that all employees engaged in the mortgage lending process at\nalternate work locations meet the appropriate standards and safeguar ds\nto continue engaging in the mortgage lending process from the alternate\nwork locations; and\n2. Review each alternate work location and provide proof of the\ndocumented review to the department upon request.\n(4) Notwithstanding any provision to the contra ry, nothing in this section shall prohibit\nmortgage loan companies from utilizing the services of a mortgage loan broker and\nits employees.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52851","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:14Z","sha256":"5f542408ae20797988c230d7ccdf6a9dcaac2d97bacce3b417e1717dd0b27675","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.8-290","next":"us-ky/krs-286.8-300"},"notice":"GroundRules: Original legal text. Not legal advice."}