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Mortgage Lending Variations in the Bluegrass Nation: Kentucky Enacts Sweeping Mortgage Lending Bill
Consumer Finance Law Quarterly Report, Vol. 62, Nos. 1-2
5/1/2008
Richard A. Vance
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I. Introduction
In April 2008, the Kentucky General Assembly enacted HB 552 (HB 552 or the Act), far-reaching legislation affecting all aspects of the mortgage lending industry. As emergency legislation, it became effective immediately. The Act contains provisions of general application addressing improper influence of appraisals and residential mortgage fraud. It establishes a new Kentucky Homeownership Protection Center and requires a new closing disclosure about its availability. In the most extensive overhaul of the Kentucky Mortgage Loan Company Act (KMLCA) since its inception, the Act eliminated a number of common exemptions to the licensing regime, and expanded the scope of mortgage loan originator and loan processor registration requirements. Finally, it tightened further the restrictions on high-cost loans enacted in the Kentucky Fair Lending Act only four years earlier.
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This article is reprinted in its entirety with permission from Consumer Finance Law Quarterly Report, Copyright 2008.