Kentucky Administrative Regulations › Title 808 - PUBLIC PROTECTION CABINET - DEPARTMENT OF FINANCIAL INSTITUTIONS › Chapter 12 - Mortgage Loan Companies and Mortgage Loan Brokers › Section 808 KAR 12:055 - Uniform standards for mortgage loan processor applicant employee background checks

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				286.8-010,
				286.8-255(9),
				15 U.S.C.
				1681, et seq.
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				286.8-140(1) authorizes the
				commissioner to promulgate administrative regulations necessary to accomplish
				the basic purposes of KRS Chapter 286.8. Prior to hiring a mortgage loan
				processor applicant,
				KRS
				286.8-255(9) requires
				licensees to perform an employee background check in accordance with uniform
				standards established by the commissioner demonstrating that the mortgage loan
				processor applicant has not been convicted of, pled guilty to, or pled nolo
				contendere to certain felonies and that the mortgage loan processor applicant
				has demonstrated financial responsibility, character, and general fitness
				sufficient to command the confidence of the community and to warrant a
				determination that the mortgage loan processor applicant will operate honestly,
				fairly, lawfully, and efficiently within the purposes of KRS Chapter 286.8.
				This administrative regulation establishes the uniform standards for these
				employee background checks.
Section 1.
			 Definitions.
(1) "Adverse action" means a
			 denial of employment based in whole or in part on information obtained from an
			 employee background check conducted pursuant to
			 KRS
			 286.8-255(9) and this
			 administrative regulation.
(2)
			 "Consumer report" is defined by section 603(d) of the federal Fair Credit
			 Reporting Act,
			 15 U.S.C.
			 1681a(d).
(3) "Control person" means the following:
(a) A director, general partner, managing
			 member, or executive officer;
(b)
			 Any person who:
1. Directly or indirectly has
			 the right to vote ten (10) percent or more of a class of a voting security;
			 or
2. Has the power to sell or
			 direct the sale of ten (10) percent or more of a class of voting
			 securities;
(c) In the
			 case of a partnership or limited liability company, any person that has the
			 right to receive upon dissolution ten (10) percent or more of the capital;
			 or
(d) Any person that exercises
			 control.
(4)
			 "Governmental agency" means any executive, legislative, or judicial agency,
			 department, authority, political subdivision, or instrumentality of a state,
			 the United States, or a foreign government.
(5) "Licensee" is defined by
			 KRS
			 286.8-010(15).
(6) "Mortgage loan processor" is defined by
			 KRS
			 286.8-010(22).
(7) "Mortgage loan processor applicant" means
			 a person making an application with a licensee to be employed by the licensee
			 as a mortgage loan processor.
(8)
			 "Nationwide consumer reporting agency" means a consumer reporting agency that
			 compiles and maintains files on consumers on a nationwide basis as defined by
			 section 603(p) of the federal Fair Credit Reporting Act,
			 15 U.S.C.
			 1681a(p).