HOUSE BILL No. 2595
(Amends Chapter 88)
An Act amending the Kansas mortgage business act; amending K.S.A.
2000 Supp. 9-2201,
as amended by section 2 of 2001 House Bill No. 2481 and
repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2000 Supp.
9-2201, as amended by section 2 of
2001 House Bill No. 2481, is hereby amended to read as follows:
As used in this act:
(a) ``Bona fide office'' means an
applicant's or licensee's principal
place of business which meets all of the following
(1) The office is located in this
(2) the office is not located in a
(3) the office has regular hours of
(4) the office is accessible to the
(5) the office is leased or owned by the
licensee and serves as an
office for the transaction of the licensee's mortgage business;
(6) the office is separate from any
office of another registrant; and
(7) all of the licensee's books,
records and documents are accessible
through that office.
(b) ``Branch office'' means a place of
business, other than a principal
place of business, where mortgage business is conducted, and which
licensed as required by this act.
(c) ``Commissioner'' means the Kansas
state bank commissioner.
(d) ``License'' means a license issued by
the commissioner to engage
in mortgage business as a mortgage company.
(e) ``Licensee'' means a person who is
licensed by the commissioner
as a mortgage company.
(f) ``Loan originator'' means an
(1) Who engages in mortgage business on
behalf of a single mortgage
(2) who is registered with the
commissioner as required by this act;
(3) whose conduct of mortgage business is
the responsibility of the
(4) whose job responsibilities include
direct contact with borrowers
during the loan origination process, which can include soliciting,
ating, acquiring, arranging or making mortgage loans for others,
personal or financial information, assisting with the preparation
applications or other documents, quoting loan rates or terms, or
required disclosures. It does not mean a person whose job
on behalf of a licensee are solely clerical in nature.
(g) ``Mortgage business'' means engaging
in, or holding out to the
public as willing to engage in, for compensation or gain, or in the
tation of compensation or gain, directly or indirectly, the
business of mak-
ing, originating, servicing, soliciting, placing, negotiating,
ing, or arranging for others, or offering to solicit, place,
sell or arrange for others, mortgage loans in the primary
(h) ``Mortgage company'' means a person
engaged in mortgage busi-
ness from a principal place of business or branch office, which has
licensed as required by this act.
(i) ``Mortgage loan'' means a loan or
agreement to extend credit made
to a natural person which is secured by a first or second mortgage,
of trust, contract for deed or other similar instrument or document
resenting a security interest or lien upon any lot intended for
purposes or a one-to-four family dwelling, located in this state,
or intended to be occupied for residential purposes by the owner,
cluding the renewal or refinancing of any such loan.
(j) ``Person'' means any individual, sole
partnership, trust, association, joint venture, pool syndicate,
ated organization or other form of entity, however organized.
(k) ``Primary market'' means the market
wherein mortgage loans are
originated between a lender and a borrower, whether or not through
mortgage broker or other means.
``Principle place of
business'' ``Principal place of business''
a licensed place of business where mortgage business is conducted,
has been designated by a licensee as the primary headquarters from
all mortgage business and administrative activities are managed and
(m) ``Promotional items'' means pens,
pencils, hats and other such
(n) ``Registrant'' means any individual
who holds a valid registration
to conduct mortgage business in this state as a loan
Sec. 2. K.S.A. 2000 Supp. 9-2201, as amended by
section 2 of 2001
House Bill No. 2481, is hereby repealed.
Sec. 3. This act shall take effect and be in force
from and after No-
vember 1, 2001, and its publication in the statute book.
Approved May 9, 2001.