Search Form
Now choose a category »

Key Votes

HB 552 - Mortgage Reform - Key Vote

Kentucky Key Votes

Steve Beshear signed this Legislation.

Read statements Steve Beshear made in this general time period.

Stages

Family

Issues

Stage Details

Legislation - Signed (Executive) -

Title: Mortgage Reform

Legislation - Concurrence Vote Passed (House) (86-7) - (Key vote)

Title: Mortgage Reform

Vote Smart's Synopsis:

Vote to pass an bill to change Kentucky mortgage laws.

Highlights:
-Establishes the Kentucky Homeownership Protection Center to provide homeowners with information on mortgage-related public services (Sec. 1). -Allows the executive director of financial institutions to suspend or revoke the license of a lender who has used fraudulent lending practices or attempted to influence the appraisal of real estate in connection to a mortgage loan (Sec. 9). -Limits prepayment penalties at three percent for the first year, two percent for the second year, and one percent for the third year; also prohibits prepayment penalties for borrowers who repay the loan 60 days prior to the first interest rate reset or who refinance with the same mortgage loan company that funded the mortgage (Sec. 11) -Prohibits lender from soliciting a consumer with an offer of certain rates, terms, and costs with the knowledge that they will be changed to the detriment of the consumer (Sec. 15). -Requires applicants for initial registration of mortgage loan originators and mortgage loan processors to document 12 hours of complete classroom time in education courses directly related to the mortgage lending process (Sec. 17). -Requires all registered lenders and processors to complete at least 12 hours of continuing professional education, with at least six in the classroom, during a calendar year running from November 1 to October 31 the following year (Sec. 18). -Requires a mortgage loan broker to disclose to borrowers all material facts that might affect the borrower’s interests and makes failure to do so punishable by a fine of up to $5,000 (Sec. 19, 20). -Creates mortgage lending fraud prosecution account to be used for the criminal prosecution of fraudulent activities within the mortgage lending process (Sec. 22). -Requires any person applying for a license, registration, or claim of exemption after January 1, 2010 must pass a written examination prior to issuance (Sec. 27). -Prohibits lenders from making a high cost home loan that allows the borrower to make payments that are only applied to interest or without verifying a borrower’s reasonable ability to pay (Sec. 31).
Note:

NOTE: THIS IS A SUBSTITUTE BILL, MEANING THE LANGUAGE OF THE ORIGINAL BILL HAS BEEN REPLACED. THE DEGREE TO WHICH THE SUBSTITUTE BILL TEXT DIFFERS FROM THE PREVIOUS VERSION OF THE TEXT CAN VARY GREATLY.

Legislation - Bill Passed With Amendment (Senate) (36-0) -
Note:

NOTE: THIS IS A SUBSTITUTE BILL, MEANING THE LANGUAGE OF THE ORIGINAL BILL HAS BEEN REPLACED. THE DEGREE TO WHICH THE SUBSTITUTE BILL TEXT DIFFERS FROM THE PREVIOUS VERSION OF THE TEXT CAN VARY GREATLY.

Legislation - Bill Passed (House) (87-0) -
Note:

NOTE: THIS IS A SUBSTITUTE BILL, MEANING THE LANGUAGE OF THE ORIGINAL BILL HAS BEEN REPLACED. THE DEGREE TO WHICH THE SUBSTITUTE BILL TEXT DIFFERS FROM THE PREVIOUS VERSION OF THE TEXT CAN VARY GREATLY.

Legislation - Introduced (House) -

Title: Mortgage Reform

Sponsors

Skip to top
Back to top