The Division of Non-Depository Institutions oversees non-depository institutions in Kentucky. These include:
Through its four branches, the Division of Non-Depository Institutions examines companies, licenses and registers entities and individuals, and investigates complaints and suspicious activity. The division also provides educational materials and outreach to protect consumers from financial fraud.
Mortgage Examination Branch
The Mortgage Examination Branch examines mortgage loan companies and mortgage loan brokers licensed by DFI. The staff conducts mortgage examinations on an 18- to 24-month cycle. The examinations’ primary purpose is to ensure these businesses comply with state laws found in KRS 286.8 and with federal laws and regulations such as the Real Estate Settlement Procedures Act (RESPA) and Regulation Z (Truth-in-Lending).
The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) have recognized DFI’s efficient and effective mortgage examination program for meeting the rigorous standards of examination excellence. DFI became the third state mortgage regulator to be accredited in 2010. Accreditation shows the department follows the highest standards of mortgage supervision and regulation. For more information, visit CSBS.
Non-Mortgage Examination Branch
DFI’s Non-Mortgage Examination Branch examines consumer loan companies, industrial loan companies, check cashing/deferred deposit companies and money transmitters. The branch examines licensees annually or as otherwise required to ensure they are following the relevant state statutes: KRS 286.4, KRS 286.7KRS 286.9 and KRS 286.11, respectively.
The Licensing Branch handles all license applications and renewals for non-depository entities. It also registers and renews registrations of all mortgage loan originators.
Consumer Protection Branch
The Consumer Protection Branch handles consumer complaints about regulated industries, such as mortgage lenders and deferred deposit companies/check cashers. It also investigates complaints and issues that arise during examination. The branch may identify, investigate and prosecute those companies and individuals who commit financial crimes and unethical behavior against Kentucky citizens.