{"data":{"id":"us-ky/krs-99a.060","jurisdiction":"us-ky","citation":"KRS 99A.060","heading":"Special endorsements on policies of mortgage guaranty insurance.","body":"(1) The commissioner of the Department of Insurance shall approve the issuance of\nspecial endorsements on policies of mortgage guaranty insurance by an insurer\npursuant to this section. The commissioner of the Department of Insurance within\nten (10) days of ap proval shall notify the executive director of the Kentucky\nHousing Corporation of the name of the insurer.\n(2) No insurer shall be authorized to issue special endorsements except upon\nsubmission of an application to and approval of such application by the\ncommissioner of the Department of Insurance. In granting such applications the\ncommissioner of the Department of Insurance shall consider:\n(a) The financial condition of the insurer;\n(b) The percentage of defaulted loans insured by the insurer within the p ast five\n(5) years; and\n(c) Such other standards as prescribed by the commissioner of the Department of\nInsurance.\n(3) Upon approval by the commissioner of the Department of Insurance, the insurer\nmay issue special endorsements on policies of mortgage guar anty insurance\ncovering that portion of a mortgage or rehabilitation loan which exceeds ninety\npercent (90%) but is less than one hundred twenty -five percent (125%) of the\nappraised value of the residential building and the property on which it is located\nafter completion of the rehabilitation.\n(4) An insurer shall issue a special endorsement only upon certification by the\nmortgagee that:\n(a) The residential property subject to the mortgage or rehabilitation loan is\nlocated within the boundaries of a neighb orhood development zone\nestablished pursuant to KRS 99A.020;\n(b) The mortgagor is unable to secure the necessary funds for rehabilitation upon\nreasonable terms and conditions without the guaranty provided by the special\nendorsement;\n(c) The loan is an acce ptable risk, taking into consideration the need for the\nrehabilitation, the security for the loan or loans, and the ability of the\nmortgagor to repay the mortgage or rehabilitation loan; and\n(d) The mortgage or rehabilitation loan transaction complies with  such other\nterms, conditions and restrictions as may be prescribed by the executive\ndirector of the Kentucky Housing Corporation.\n(5) Each mortgagee who holds a mortgage covered by a policy of mortgage guaranty\ninsurance with a special endorsement pursuan t to this section shall submit a\nquarterly report to the executive director of the Kentucky Housing Corporation\nlisting each mortgage or rehabilitation loan covered by such special endorsement\nand the status of such mortgage or rehabilitation loan.\n(6) The commissioner of the Department of Insurance in his discretion or when\nrequested by the executive director of the Kentucky Housing Corporation as needed\nto protect the mortgage guaranty fund may withdraw the approval to an insurer to\nissue special endorsements on policies of mortgage guaranty insurance.\n(7) Any insurer subject to approval by the commissioner of the Department of\nInsurance may charge a premium for the special endorsement issued pursuant to this\nsection, of which sixty-six percent (66%) shall be remitted to the executive director\nof the Kentucky Housing Corporation to be used pursuant to KRS 99A.080.","path":["KRS Chapter 99A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=26603","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:02Z","sha256":"eb1f1c49d3f1784d89f0058f60b0d31a87b99f5dc13869eb793a1a0c51534389","source_id":"us-ky","stale":false,"prev":"us-ky/krs-99a.050","next":"us-ky/krs-99a.070"},"notice":"GroundRules: Original legal text. Not legal advice."}