9-2201.   Mortgage business; definitions.As used in this act:

      (a)   "Bona fide office" means anapplicant's or licensee's principal place of business which meetsall of the following requirements:

      (1)   The office is located in this state;

      (2)   the office is not located in a personal residence;

      (3)   the office has regular hours of operation;

      (4)   the office is accessible to the public;

      (5)   the office is leased or owned by the licensee and serves as anoffice for the transaction ofthe licensee's mortgage business;

      (6)   the office is separate from any office of anotherregistrant; and

      (7)   all of the licensee's books, records anddocuments are accessible through that office.

      (b)   "Branch office" means a place of business, other than a principalplace of business, where mortgage business is conducted, and which is licensedas required by this act.

      (c)   "Commissioner" means the Kansas state bankcommissioner.

      (d)   "License" means a license issued by the commissioner to engage inmortgagebusiness as a mortgage company.

      (e)   "Licensee" means a person who is licensed by the commissioner as amortgage company.

      (f)   "Loan originator" means an individual:

      (1)   Who engages in mortgage business on behalf of a single mortgage company;

      (2)   whose conduct of mortgage business is the responsibility of thelicensee;

      (3)   who takes a residential mortgage loan application or offers ornegotiates terms of a residential mortgage loan for compensation or gain or inthe expectation of compensation or gain; and

      (4)   whose job responsibilities include contact with borrowersduringthe loanorigination process, which can include soliciting, negotiating, acquiring,arranging or makingmortgage loans for others, obtaining personal or financial information,assisting with thepreparation of loan applications or other documents, quoting loan rates orterms, or providingrequired disclosures. It does not include any individual engaged solely asaloan processor or underwriter.

      (g)   "Loan processor or underwriter" means an individual who performs clericalor support duties as an employee at the direction and subject to thesupervision and instruction of a person registered or exempt from registrationunder this act.

      (1)   For purposes of this subsection, the term "clerical or support duties"may include subsequent to the receipt of an application:

      (A)   The receipt, collection, distribution and analysis of information commonfor the processing or underwriting of a residential mortgage loan; and

      (B)   communicating with a consumer to obtain the information necessary for theprocessing or underwriting of a loan, to the extent that such communicationdoes not include offering or negotiating loan rates or terms or counselingconsumers about residential mortgage loan rates or terms.

      (2)   An individual engaging solely in loan processor or underwriter activitiesshall not represent to the public, through advertising or other means ofcommunicating or providing information including the use of business cards,stationery, brochures, signs, rate lists or other promotional items, that suchindividual can or will perform any of the activities of a loanoriginator.

      (h)   "Nationwide mortgage licensing system and registry" means a mortgagelicensing system developed and maintained by the conference of state banksupervisors and the American association of residential mortgage regulators forthe licensing and registration of licensed mortgage loan originators.

      (i)   "Mortgage business" means engaging in, or holding outto the public aswilling to engage in, for compensation or gain, or in the expectation ofcompensation or gain, directly or indirectly, the business of making,originating, servicing, soliciting, placing, negotiating, acquiring, selling,or arranging for others, or offering to solicit, place, negotiate, acquire,sell or arrange for others, mortgage loans in the primary market.

      (j)   "Mortgage company" means a person engaged in mortgagebusiness from aprincipal place of business or branch office, which has been licensed asrequired by this act.

      (k)   "Mortgage loan" means a loan or agreement to extendcredit made to a natural personwhich is securedby a first or second mortgage, deed of trust, contract for deed or othersimilar instrument or document representing a security interest or lien uponany lot intendedfor residential purposes or a one-to-four family dwelling as defined insection 103(v) of the truth in lending act, 15 U.S.C. 1602(v), located inthisstate,occupiedor intended to be occupied for residential purposes by the owner, including therenewal or refinancing of any such loan.

      (l)   "Person" means any individual, sole proprietorship,corporation,partnership, trust, association, joint venture, pool syndicate, unincorporatedorganization or other form of entity, however organized.

      (m)   "Primary market" means the market wherein mortgageloans areoriginated between a lender and a borrower, whether or not through a mortgagebroker or other means.

      (n)   "Principal place of business"means a licensed place of business wheremortgagebusiness is conducted, which has been designated by a licensee as the primaryheadquarters fromwhich all mortgage business and administrative activities are managed anddirected.

      (o)   "Promotional items" means pens, pencils, hats and othersuch noveltyitems.

      (p)   "Registrant" means any individual whoholds a validregistration to conduct mortgage business in this stateas a loan originator.

      (q)   "Unique identifier" means a number or other identifier assigned byprotocols established by the nationwide mortgage licensing system andregistry.

      History:   L. 1996, ch. 175, § 1;L. 1999, ch. 45, § 1;L. 2001, ch. 88, § 2;L. 2001, ch. 166, § 1;L. 2009, ch. 29, § 4; July 1.