Article 3.--REGULATION OF AGREEMENTS AND PRACTICES
16a-3-207.Consumer loans secured by certain real
estate mortgages; appraisals and notice.
(1) The provisions of this section apply only to a
consumer loan which is secured by a first mortgage or a second mortgage on the
consumer's principal residence. The provisions of this section do not apply
to a lender who is a supervised financial organization.
(2) Before making a loan subject to this section, a lender shall
obtain the
appraised value of the real estate to be encumbered. The appraisal evidencing
the appraised value shall be retained by the lender and preserved in accordance
with the recordkeeping requirements set forth in K.S.A. 16a-2-304, and
amendments thereto.
(3) If, based upon the appraisal, the loan to value ratio of the loan exceeds
100%, then the lender shall deliver to the consumer:
(a) A free copy of the appraisal; and
(b) a written notice regarding high loan-to-value mortgages and
the
availability of consumer credit counseling. The administrator may adopt rules
and regulations regarding the form of the notice to be delivered to the
consumer and the names, addresses and telephone numbers of selected consumer
credit
counseling providers.
(4) The notice referred to in subsection (3)
shall be given to the consumer
not less than three days before the loan is made. The notice
must be retained by
the lender and preserved in accordance with the record-keeping requirements set
forth in K.S.A. 16a-2-304, and amendments thereto.
(5) If, within three days after
receiving the notice, the consumer elects not
to enter into the loan transaction, then the lender must promptly refund to the
consumer any application fees or other amounts paid by the consumer to the
lender. However, the lender is not required to refund any bona fide
out-of-pocket costs incurred by the lender before the consumer elected not to
enter into the loan transaction, provided that such costs were paid or are
payable to a person or persons not related to the lender. Notwithstanding the
provisions of this subsection, a bona fide appraisal fee paid or payable to a
person
related to the lender need not be refunded to the consumer.
(6) This section shall be supplemental to and a part of the
uniform consumer
credit code.
History: L. 1999, ch. 107, § 1;
L. 2000, ch. 64, § 2; July 1.
Article 3.--REGULATION OF AGREEMENTS AND PRACTICES
16a-3-207.Consumer loans secured by certain real
estate mortgages; appraisals and notice.
(1) The provisions of this section apply only to a
consumer loan which is secured by a first mortgage or a second mortgage on the
consumer's principal residence. The provisions of this section do not apply
to a lender who is a supervised financial organization.
(2) Before making a loan subject to this section, a lender shall
obtain the
appraised value of the real estate to be encumbered. The appraisal evidencing
the appraised value shall be retained by the lender and preserved in accordance
with the recordkeeping requirements set forth in K.S.A. 16a-2-304, and
amendments thereto.
(3) If, based upon the appraisal, the loan to value ratio of the loan exceeds
100%, then the lender shall deliver to the consumer:
(a) A free copy of the appraisal; and
(b) a written notice regarding high loan-to-value mortgages and
the
availability of consumer credit counseling. The administrator may adopt rules
and regulations regarding the form of the notice to be delivered to the
consumer and the names, addresses and telephone numbers of selected consumer
credit
counseling providers.
(4) The notice referred to in subsection (3)
shall be given to the consumer
not less than three days before the loan is made. The notice
must be retained by
the lender and preserved in accordance with the record-keeping requirements set
forth in K.S.A. 16a-2-304, and amendments thereto.
(5) If, within three days after
receiving the notice, the consumer elects not
to enter into the loan transaction, then the lender must promptly refund to the
consumer any application fees or other amounts paid by the consumer to the
lender. However, the lender is not required to refund any bona fide
out-of-pocket costs incurred by the lender before the consumer elected not to
enter into the loan transaction, provided that such costs were paid or are
payable to a person or persons not related to the lender. Notwithstanding the
provisions of this subsection, a bona fide appraisal fee paid or payable to a
person
related to the lender need not be refunded to the consumer.
(6) This section shall be supplemental to and a part of the
uniform consumer
credit code.
History: L. 1999, ch. 107, § 1;
L. 2000, ch. 64, § 2; July 1.
Article 3.--REGULATION OF AGREEMENTS AND PRACTICES
16a-3-207.Consumer loans secured by certain real
estate mortgages; appraisals and notice.
(1) The provisions of this section apply only to a
consumer loan which is secured by a first mortgage or a second mortgage on the
consumer's principal residence. The provisions of this section do not apply
to a lender who is a supervised financial organization.
(2) Before making a loan subject to this section, a lender shall
obtain the
appraised value of the real estate to be encumbered. The appraisal evidencing
the appraised value shall be retained by the lender and preserved in accordance
with the recordkeeping requirements set forth in K.S.A. 16a-2-304, and
amendments thereto.
(3) If, based upon the appraisal, the loan to value ratio of the loan exceeds
100%, then the lender shall deliver to the consumer:
(a) A free copy of the appraisal; and
(b) a written notice regarding high loan-to-value mortgages and
the
availability of consumer credit counseling. The administrator may adopt rules
and regulations regarding the form of the notice to be delivered to the
consumer and the names, addresses and telephone numbers of selected consumer
credit
counseling providers.
(4) The notice referred to in subsection (3)
shall be given to the consumer
not less than three days before the loan is made. The notice
must be retained by
the lender and preserved in accordance with the record-keeping requirements set
forth in K.S.A. 16a-2-304, and amendments thereto.
(5) If, within three days after
receiving the notice, the consumer elects not
to enter into the loan transaction, then the lender must promptly refund to the
consumer any application fees or other amounts paid by the consumer to the
lender. However, the lender is not required to refund any bona fide
out-of-pocket costs incurred by the lender before the consumer elected not to
enter into the loan transaction, provided that such costs were paid or are
payable to a person or persons not related to the lender. Notwithstanding the
provisions of this subsection, a bona fide appraisal fee paid or payable to a
person
related to the lender need not be refunded to the consumer.
(6) This section shall be supplemental to and a part of the
uniform consumer
credit code.
History: L. 1999, ch. 107, § 1;
L. 2000, ch. 64, § 2; July 1.