Has anyone begun using this form? Are we supposed to provide it only on purchase transactions or ANY loan involving a mortgage?

Since it is not specific, but just says that a mortgagee shall provide at closing to the homeowners, I think it should be given for all loans involving a mortgage for a home. We have not begun using it yet since we don't have to until Jan 1. I am too busy with the red flags to try to train on this too.

I am also waiting to see what our form vendor may do.

Ditto here. . . . . . .

Could changes be made to the form as long as the content stays the same?

We thought about adding it as a free form in our software so we could print it with the closing documents, however it would not look exactly as the document on the KHPC website.

I'm still curious, has anyone received any information if this is to be given for any loan with a residential mortgage like IU Alum asked?

You may have found your answer already, but this was posted on the Kentucky Department of Financial Institutions site:

Does it matter what kind of property the loan secures?
Yes. The form is needed for loans secured by a mortgage on residential real property in Kentucky. The form is not needed for loans secured by commercial property.

Does the purpose of the loan matter?
No. The form is needed for loans secured by a residential mortgage, no matter the purpose of the loan. For example, if a residential property is used as collateral on another type of loan, the form should be used.

Does it matter if the home is the borrower's primary residence?
No. The form should be used either way.

Does it matter if the home is to be used as a rental property?
No. The form should be used either way.

Does it matter if the property is located in Kentucky?
Yes. The form should be used when loans are secured by mortgages on residential real property in Kentucky. The form is not required for loans secured by mortgages on residential property located outside Kentucky.

Is the form required if the borrower is a Kentucky resident but the home is located in another state?
No. The form is not required if a Kentucky resident is obtaining a loan secured by residential property in another state. However, all Kentucky citizens are welcome use the resources available through the Protect My Kentucky Home Web site and phone number.



I hope this information helps.

We will use it for any loan secured at least one real property that is majority residential use.
Defining residential vs commercial property may prove difficult. But for now we think it should include the following:

• Construction loans for spec homes & multi-family
• Loans secured by farms with a residence(s) of majority value
• Multi-use properties if 50% or more residential

We tend to think it would exclude the following:

• Nursing Homes & Long Term Care facilities
• Loans for building sites that would later require a constr loan to "convert" the property.

Other opinions and insights would be welcome.

What, if anything, are most KY banks doing on renewals? We renew loans with the same loan number (we do not pay off and rewrite). Would we need to give this disclosure on a loan originated prior to the law's implementation date but renewed after the effective date? What if we gave the disclosure at origination - do we need to redisclose at renewal?

Thanks

Do you feel that this is needed if the customer is a corporation and it's rental property?

We are wondering the same thing. I called the Kentucky Deparment of Financial Instutions and asked them about the disclosure and commercial lending and was told my question was too specific for them. So no real answer. At the momment our commercial lenders are not giving this disclosure but we are starting to think we may have to. Has anyone received a clear answer?

I have learned that there are no real answers about this disclosure!

I don't know if this is right or not, but we are giving the notice anytime the owner of the property is an individual - even if the borrower is a business entity. I feel like the purpose was to protect individuals, so that is why we are doing it this way. The purpose of the loan doesn't matter according to the short FAQ that the department offered.