I have read that they are changing the restrictions on selling credit life on residential real estate lending. Can we now have credit life financed by the loan proceeds? And do we still use the Kentucky disclosure or just the Federal disclosures?
Thanks

This is from a Memorandum to Kentucky State Chartered Banks dated May 19, 2006 in regards to Senate Bill 45/Predatory Lending.

http://www.kfi.ky.gov/legislativechanges/banking/

"The 2006 Kentucky General Assembly passed Sendate Bill 45, which resulted in several changes to Chapter 287 of the Kentucky Revised Statutes. One of the changes involved the state's super-parity law, KRS 287.102. This change now allows state-chartered banks to be exempt from any statutes or regulations which would be preempted for other banks or thrifts. The primary area that is preempted is in the arena of residential real estate lending, specifically state predatory lending laws.

Banks that choose to make loans that conflict with the requirements of KRS 360.100 must follow ny directives issued by the Office of the Comptroller of the Currency (OCC). In January 2004, the OCC issued a final rule that essentially preempted the application of portions of KRS Chapter 360 to national banks, in the belief that the chapter obstructed or impaired a national bank's ability to engage in lending activities. In particular, the "high-cost" lending provisions, found in KRS 360.100, would be subject to this final rule. As a result, national banks are exempt from limitations contained in this statute."