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#1404962 - 06/17/10 03:40 PM Protect My Kentucky Home
Big Blue Banker Offline
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I was reading through the FAQs regarding the "Protect My Kentucky Home" act here... FAQs

My confusion is what is "commercial property"? The FAQs state that the form doesn not need to be completed if the loan is secured by commercial property, but it does need to be given out if the loan is secured by a second home or rental property. Isn't rental property commercial property? Or is that driven by the borrower? If it's a business purchasing a rental property then we wouldn't give the disclosure but if an individual purchased rental property, we would?

Thanks!

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#1405281 - 06/17/10 08:22 PM Re: Protect My Kentucky Home Big Blue Banker
Key Lime Pie Offline
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Louisville, KY
We have a call into someone at the state regarding this very question. The person we contacted said they didn't know if rental property should be included and would call us back. No return call yet. It's probably been a couple of weeks.

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#1405295 - 06/17/10 08:40 PM Re: Protect My Kentucky Home Key Lime Pie
Big Blue Banker Offline
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Do you still have the number or name of the Department/person you called? Maybe I'll give them a call as well.

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#1407084 - 06/23/10 02:47 PM Re: Protect My Kentucky Home Big Blue Banker
elebra Offline
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I think the purpose of the disclosure is to make the customer aware that someone could lose their home if the loan goes into default. We give the form to all loans that have someone's home as collateral (second homes, rental houses, duplexes and so on). Commercial property, to us, is storefronts, warehouses, storage building, etc. Maybe this helps.

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#1407234 - 06/23/10 05:48 PM Re: Protect My Kentucky Home elebra
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Louisville, KY
Ok, we got an answer back.
- not required for any multi-family dwelling (5-plex or larger)
- required for owner-occupied 2-4 family dwelling
- required for any single-family dwelling

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#1437346 - 09/01/10 01:11 PM Re: Protect My Kentucky Home Key Lime Pie
Sugarbaker Offline
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Is this required for national bank as well or just state examined banks?

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#1525476 - 03/22/11 08:50 PM Re: Protect My Kentucky Home Sugarbaker
Live 2 Comply Offline
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what if you had a commercial building with an apartment?

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#1525999 - 03/23/11 06:41 PM Re: Protect My Kentucky Home Live 2 Comply
tuma Offline
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Reading the disclosure, it is clear it is designed for a consumer-residential situation. However the law, as written, makes is applicable to any residence. We provide it for any loan with a residential unit, including a commercial property with an apt, a farm with a unit on it, or a residential construction loan.
FAQ Link: click Ky Dept of Fin Institution

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#1526049 - 03/23/11 07:17 PM Re: Protect My Kentucky Home tuma
shea930 Offline
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Do you have to use the exact form on this website or can it have a modified look? The only reason I ask is because we just switched loan orginating software and the disclosure they provide reads the same but looks completely different. It also does not have a place for us to write in the address of the collateral, will this be a problem???

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#1529368 - 03/31/11 02:06 PM Re: Protect My Kentucky Home shea930
tuma Offline
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From KDFI website: "At the time of closing and together with the final signed loan documents, ... a mortgagee shall provide to the homeowner any brochure, pamphlet, or other brief document prepared or approved by the Kentucky Housing Corporation that describes the services provided by the Kentucky Homeownership Protection Center"
----We interpret this to be the exact form.

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#1547345 - 05/06/11 03:18 PM Re: Protect My Kentucky Home tuma
Live 2 Comply Offline
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Ok, so son is borrowing the money and father is putting his house up for collateral. Who signs the document?
From the website it talks about the borrower no mention of owner:
This shall be provided at the time of closing and together with the final signed loan documents — one copy to the borrower and one copy maintained in the lender’s files. This applies to all mortgage lenders, including banks, credit unions and consumer loan companies.

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#1619370 - 10/24/11 09:27 PM Re: Protect My Kentucky Home Live 2 Comply
Skittles Online
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We just had an exit meeting with our external consultant and I have a question. Is the address of the property taken as collateral required to be on this notice? Does anyone have the KRS # I can review?

Thanks!
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#1619861 - 10/25/11 07:40 PM Re: Protect My Kentucky Home Skittles
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Duchess,

The notice is required by KRS 286.2-020 as found here:

http://www.lrc.ky.gov/KRS/286-02/020.PDF

While the KRS does not specificially state that an address must be noted on the notice, if your form is anything like ours, an address line is provided.

Our form is produced in Laser Pro and is identicial to the form provided by the state:

http://kfi.ky.gov/Documents/Notification...-%20ACROBAT.pdf

I'm guessing that your external counsultant is deeming the form is not properly completed due to the fact that an address is not provided. For what it is worth, Laser Pro does not automatically provide the address on the form and we would have to complete it manually.

You may be able to argue that since the form is in the file, it relates to the collateral taken. Probably a best practice would be to complete the form including the address (since the state has provided lines to note the address).

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#1619872 - 10/25/11 07:46 PM Re: Protect My Kentucky Home Live 2 Comply
Irishguy Offline
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Originally Posted By: Live 2 Comply
Ok, so son is borrowing the money and father is putting his house up for collateral. Who signs the document?
From the website it talks about the borrower no mention of owner:
This shall be provided at the time of closing and together with the final signed loan documents — one copy to the borrower and one copy maintained in the lender’s files. This applies to all mortgage lenders, including banks, credit unions and consumer loan companies.


Live,

Here is the KRS:

286.2-020 Required disclosure of services provided by Kentucky Homeownership Protection Center.
(1) "Kentucky Homeownership Protection Center" means the center established in KRS 198A.400.
(2) At the time of closing and together with the final signed loan documents, if the Kentucky Homeownership Protection Center is operational as provided in KRS 198A.400, a mortgagee shall provide to the homeowner any brochure, pamphlet, or other brief document prepared or approved by the Kentucky Housing Corporation that describes the services provided by the Kentucky Homeownership Protection Center.

Looks like the form is required to be given to the homeowner. You could always make both of them sign it. Worse case, you have over-disclosed to someone.

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#1620478 - 10/26/11 07:18 PM Re: Protect My Kentucky Home Irishguy
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Here is a current link to the Kentucky Home Ownership Protection Center http://www.kfi.ky.gov/industry/Pages/khpc.aspx

It has a "model form" that does not have the property address, so while an external auditor may feel it is "best" to place the address on the form, I can't see how this would be required. (Think about the non-required sigatures we obtain just because everyone else does, do we want to create a model where this becomes more than it really is?)

But to answer the question - Irish and I agree 100% about teh "homeowner" portion of the requirement and also agree that overdisclosure is probably not a problem.
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#2061465 - 02/01/16 03:08 PM Re: Protect My Kentucky Home Big Blue Banker
tryin2comply Offline
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Is there anything that states what address should be provided on the form: Application address or collateral address? My processor is questioning this because the software is pulling the application address. Thanks!

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#2076251 - 04/28/16 08:31 PM Re: Protect My Kentucky Home Big Blue Banker
tuma Offline
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Here & There
FWIW - we use the address of the collateral.

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#2260549 - 09/30/21 08:11 PM Re: Protect My Kentucky Home Big Blue Banker
Live 2 Comply Offline
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What if the owner is not a natural person like a trust? Has anyone had this issue?

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#2260552 - 09/30/21 08:32 PM Re: Protect My Kentucky Home Big Blue Banker
rlcarey Offline
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