Mortgage Licensing and Exemptions
All mortgage entities and individuals must now use the Nationwide Mortgage Licensing System (NMLS) for licensing and registration. Exempt companies do not have to use NMLS, however the individuals working for exempt companies must use NMLS.
The Kentucky Department of Financial Institutions (DFI) is a part of the NMLS. NMLS is a collaborative effort among state regulators to bring greater efficiency and accountability to the supervision of the mortgage industry.
 |
Overview of the System |
 |
NMLS is a secured, Web-based system that will allow state licensees, companies, branches, loan officers and processors to apply for, amend, update or renew licenses online in Kentucky as well as in other participating states  .
Each licensed company will have a single record in NMLS, regardless of the number of licenses it holds or the number of states in which it operates. Each licensed company will have access to its record in the system through a secure Web site, allowing it to conveniently view license information, apply for new licenses, amend existing licenses and renew or surrender licenses throughout the year.
Licensees will have access to the system 362 days a year, seven days a week with operational assistance available through a national call center. Applicants will need a high-speed Internet connection to access the system.
(Click on the above logo to visit the NMLS Web site at: www.stateregulatoryregistry.com/nmls .)
As of July 1, 2008, DFI no longer absorbs the processing fees charged by NMLS. Therefore, all entities and individuals transitioning or submitting new applications after that date will be required to pay a processing fee directly to NMLS in order to be eligible to submit an application through the system. The processing fee paid to NMLS is separate and distinct from the licensing or registration fees payable to DFI. Kentucky was one of the few states to absorb those fees for a time as a courtesy to the industry, to encourage the earliest possible transition to the new system.
|
Updating a License or Registration in Kentucky |
|
By June 30, 2008, all companies and individuals holding a mortgage license or registration in Kentucky should have transitioned their information onto the NMLS.
If your company already has an account on the NMLS, then renewing or updating a license in Kentucky merely involves filing your company’s NMLS record (Form MU1) and relevant branch records (Form MU3) through NMLS and mailing in the required jurisdiction-specific requirements. The same is true for individuals’ registrations. The NMLS Getting Started page will walk you through all the steps.
Review Kentucky DFI’s jurisdiction-specific items on the NMLS State Licensing Resource page or review the How to Register information below.
|
Applying for a License or Registration in Kentucky |
|
If a company or individual does not currently have an account on the NMLS and is interested in applying for a license or registration in Kentucky, getting started is easy. The NMLS Getting Started page will walk you through all the steps.
This involves creating an account for the company on NMLS, completing a company record (Form MU1), a record for each Control Person, such as an executive officer, qualified individual and branch manager (Form MU2), and a record for each licensed branch office (Form MU3).
Additionally, all individuals – loan originators and processors – must have a Form MU4 submitted through the NMLS.
|
How to Register |
|
Mail correspondence to:
Department of Financial Institutions
1025 Capital Center Drive, Suite 200
Frankfort, KY 40601
Click the links below to go directly to the appropriate section:
|
Mortgage Broker and Company Licenses |
|
Mortgage bankers, servicers and brokers are licensed to make, purchase, buy, sell, service and broker Kentucky residential mortgages. If an out-of-state branch is doing Kentucky business, it must be licensed with DFI.
How to License a Mortgage Broker/Company:
- Read Kentucky Revised Statutes (KRS) 286.8. Many applicants’ questions are answered in the statutes. The statute has been amended by House Bill 552, which was signed into law April 24 and is effective immediately unless otherwise noted in the bill. More information is available on DFI's Mortgage Law Changes page.
- Submit the application form online via NMLS .
- Submit a surety bond.
The license renewal period is moving to a calendar-year basis. All entities must renew by Nov. 30, which is the new annual deadline.
The full licensing fee is $750 for the principal office and $400 for each branch office. For more information, read the following order. [PDF 459K]
If licenses are not renewed by the deadline, there will be a $250 reinstatement fee required.
Documents:
Surety Bond for Mortgage Loan Company [PDF 60K]
Surety Bond for Mortgage Loan Broker [PDF 60K]
Mortgage Loan Company Loan File Checklist [PDF 59K]
Mortgage Loan Broker Loan File Checklist [PDF 60K]
State License Confirmation Form [PDF 45K]
Mortgage Examination Scheduling Policy [PDF 41K]
For More Information:
Contact Pam Fitzgerald by e-mail or at 502-573-3390, ext. 255, with questions regarding applications, licensing, registration or exemptions.
For additional information, please refer to both House Bill 552 and KRS 286.8.
Back to Top
Back to How to Register
|
Companies Filing a Claim of Exemption (HUD and Nonprofit) |
|
Mortgage bankers, servicers and brokers approved by HUD shall register their exemption. Exemptions will expire annually on Dec. 31 and must be renewed prior to that.
For more information, read KRS 286.8, as well as House Bill 552, which amends the statute. The bill was signed into law April 24 and is effective immediately unless otherwise noted. More information is available on DFI's Mortgage Law Changes page.
Effective July 12, 2006, HUD-exempt entities (mortgage lenders, brokers and branches) must report annually the number of FHA-insured mortgage loans that were originated on Kentucky properties during the preceding calendar year. For more information, read DFI's HUD-Exempt Entities Compliance Procedures for Changes to KRS 286.8. [PDF 65K]
PLEASE NOTE: Entities that have previously surrendered a HUD exemption or have had a HUD exemption revoked for failure to meet the 12 FHA-insured loan requirement set forth in KRS 286.8-020(4) are not eligible to reapply for another HUD exemption unless the following conditions are met. An entity must become licensed and fund or broker a minimum of 12 FHA-insured loans originated on Kentucky properties in a single calendar year in order to reacquire a HUD exemption once it is surrendered or revoked.
Documents:
HUD Exemption Application [PDF 95K]
HUD Exempt - FHA Loans Report [PDF 45K]
Nonprofit Mortgage Exemption Application [PDF 9K]
For More Information:
Contact Pam Fitzgerald by e-mail or at 502-573-3390, ext. 255, with questions regarding applications, licensing, registration or exemptions.
Contact Chris Thompson by e-mail or at 502-573-3390, ext. 243, regarding regulatory or compliance questions.
For additional information, please refer to both House Bill 552 and KRS 286.8.
Back to Top
Back to How to Register
|
Mortgage Individual and Processor Registrations |
|
All loan originators (loan officers) of licensed entities and HUD-approved mortgage companies and/or mortgage brokers are required to be registered. Out-of-state loan officers and brokers assisting Kentucky clients must be registered with DFI. Also, with the passage of HB 552, processors must now be registered in order to transact business.
How to Register a Loan Officer/Originator or Processor:
- Read KRS 286.8. Many applicants’ questions are answered in the statutes. The statute has been amended by House Bill 552, which was signed into law April 24 and is effective immediately unless otherwise noted in the bill. More information is available on DFI's Mortgage Law Changes page.
- Submit a fingerprint card to the FBI for background check. When you receive the card back from the FBI, submit it, along with any attached report, to DFI.
- Complete 12 hours of continuing education. For a first-time registration, the 12 hours must all be classroom. For a renewal, six hours must be classroom and six may be online.
- Submit the application form online via NMLS .
NOTE: Be aware that effective July 11, 2006, temporary registration certificates will be an option for individuals as a result of House Bill 462. The temporary certificate may be issued while the individual is waiting for the background check.
The registration renewal period is moving to a calendar-year basis. All individuals must renew by Nov. 30, which is the new annual deadline.
The full registration fee is $50. For more information, read the following order. [PDF 459K]
If registrations are not renewed by the deadline, there will be a $250 reinstatement fee required.
You will receive a letter in the mail stating your registration is current. Retain the letter for your records, as this serves as your proof of registration.
Documents:
Criminal Background Check Requirements [PDF 73K]
NOTE: Criminal background checks take approximately 14 to 16 weeks for the FBI to process.
Affidavit for Criminal Background Check [DOC 21K]
Privacy Act Waiver [PDF 53K]
NOTE: Only submit this form if DFI notifies you it is required after reviewing your application.
For More Information:
Contact Emily Draper by e-mail or at 502-573-3390, ext. 254, with any questions regarding applications, licensing, registration or exemptions.
For additional information, please refer to both House Bill 552 and KRS 286.8.
Back to Top
Back to How to Register
|
Mortgage Education Provider Application Process |
|
Those wishing to begin offering mortgage originator continuing education courses should fill out the following application. Entities and courses must be approved as a continuing education provider/course pursuant to KRS 286.8-.260(5).
Note: Continuing education providers doing business in Kentucky are required to register with the Kentucky State Board for Proprietary Education. Contact the Board at 502-564-3296, ext. 227, regarding its registration requirements.
Documents:
Mortgage Originator Continuing Education Provider/Course Application [PDF 72K]
For More Information:
Contact Chris Thompson by e-mail or at 502-573-3390, ext. 243, regarding questions about becoming a continuing education provider.
Back to Top
Back to How to Register NOTE: The downloadable documents on this page can be viewed with Adobe Acrobat Reader or Microsoft Word. If an alternative format is needed, contact Kelly May at 502-573-3390, ext. 252. If you have questions about the documents or procedures, please contact the appropriate person noted in your section.
Department of Financial Institutions
1025 Capital Center Drive
Suite 200
Frankfort, KY 40601
Phone: 502-573-3390
Toll free: 800-223-2579
Fax: 502-573-0086
E-mail: kfi@ky.gov
|