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Senate Bill 97: What Kentucky Mortgage Lenders Should Know

kentucky mortgage lenders

Keep reading to get all the facts you need on the act as a mortgage lender in Kentucky.


What You Need To Know About Senate Bill 97


What Is Senate Bill 97?

Senate Bill 97 is an act relating to mortgage loans, which Kentucky adopted in April 2016.

The purpose of the act is to amend provisions under the Mortgage Licensing and Regulation Act (MRLA), which relate to the registration requirements for mortgage loan processors.

The bill became effective on July 14, 2016.


How Will It Affect Me As A Mortgage Lender?

Basically, Senate Bill 97 means there will be new state legislation for Kentucky loan processors. Let’s break this new law down a little further…

What the bill means is similar for mortgage brokers and company licenses alike.

Mortgage bankers, along with servicers and brokers, are all licensed to make, purchase, buy, sell service, and broker residential mortgages in Kentucky.

However, if an out-of-state branch is doing business in Kentucky, it needs to be licensed with DFI.


How To License A New Mortgage Broker/Company:


  1. Read Kentucky Revised Statuses (KRS) 286.8.

KRS is the name given to the body of laws that govern the Kentucky.

The laws are created pursuant to the Kentucky Constitution and must conform to the limitations set out in the Constitutions of Kentucky along with that of the United States.

KRS chapter 286.8 includes enactments through the 2016 Regular Session for legislation.


  1. Submit the application form online via NMLS.

NMLS stands for Nationwide Mortgage Licensing System, and is the system of record for non-depository, financial services licensing or registration in participating state agencies.

In such states, this mortgage licensing system is the official system for companies and individuals seeking to apply for, amend, renew, and surrender license authorities that are managed through the system.


  1. Submit a surety bond.

surety bond is a promise by a surety or guarantor to pay one party (the obligee) a certain amount. This happens if and when a second party (the principal) fails to meet some obligation.

The surety bond works to protect the obligee against losses resulting from the principal’s failure to meet the obligation.


How Much Will This Cost Me?

Note that there are fees to license, which vary.

The state application fee is $750 for the principle office. For each branch office, the state fee is $400.

Additionally, there is an NMLS processing fee. This fee is priced at $100 per principal office and $20 per branch.


How To Renew A Mortgage Broker/Company License:


  1. Read KRS 286.8.

See above.


  1. Submit renewal online via NMLS.

See above.


  1. Submit the Annual Mortgage Activity Report.

The Annual Mortgage Activity Report is a two-page form, which you will need to complete and sign.

The report requires a mortgage broker or company to list information regarding the licensee and type(s) of mortgage activity in the state of Kentucky.


How Much Will This Cost Me?

Renewal comes at a cost. These fees include the following:

The price of the renewal fee is $350 for the principal office and $250 for each branch office.

There is also an NMLS processing fee. This fee is $100 per principal office and $20 per branch.

Additionally, if licenses are not renewed before the expiration (November 30, each year), there will be a 30-day reinstatement period. This will come with a fee of $25