Kansas MLO cheat sheet

Kansas Mortgage Business Act (K.S.A. 9-2201 et seq.) is administered by the Office of the State Bank Commissioner (OSBC); the OSBC licenses mortgage companies and registers loan originators through NMLS.

Kansas mortgage company license requires a surety bond sized by the OSBC based on loan volume; bond minimums scale upward as Kansas origination volume increases and must stay in force while licensed.

Kansas loan originator license requires prelicensure education, a passing SAFE test, a criminal background check, and sponsorship by a licensed Kansas mortgage company; the license is not self-standing.

OSBC examination and investigation authority includes subpoena of books and records; licensees must keep records available and respond to OSBC requests within the time specified in the statute or rule.

Kansas requires notification to the OSBC of changes in control, principal officers, or business address within the statutory window; unreported changes are a violation independent of any lending misconduct.

Advertising and solicitation by Kansas licensees must not be false or misleading; the OSBC may examine advertising and take disciplinary action for deceptive statements about rates, terms, or approval likelihood.

Grounds for denial, suspension, or revocation include fraud, dishonest dealing, SAFE Act violations, and failure to maintain the required bond or net worth; the OSBC may impose civil money penalties in addition to license action.

Kansas law prohibits unlicensed mortgage lending or brokering activity; each loan origination for compensation by an unlicensed person is a separate violation and supports cease-and-desist action.

RESPA Section 8 prohibits fees, kickbacks, or things of value for referrals of settlement service business; Section 8(c) safe harbor covers payments for goods or services actually performed at fair market value.

TILA-RESPA Integrated Disclosure rule: Loan Estimate delivered within 3 business days of application; Closing Disclosure delivered at least 3 business days before consummation, with a new 3-day wait if certain changed terms (APR, finance charge) increase beyond tolerance.

TRID tolerances: zero tolerance for lender credits, transfer taxes, and fees paid to affiliates of the creditor when the consumer is not permitted to shop; 10% cumulative tolerance for recording fees and shoppable services on the written list; unlimited tolerance for others.

ECOA/Regulation B prohibits discrimination in credit on prohibited bases and requires adverse action notice within 30 days of a completed application; appraisal copies must be provided promptly and no later than 3 days before consummation.

Ability-to-Repay/Qualified Mortgage (Regulation Z): ATR underwriting must consider and verify eight factors including income, employment, assets, debts, and DTI; QM status provides a safe harbor or rebuttable presumption depending on pricing.

HMDA (Regulation C) requires covered institutions to collect, record, and report loan-level data including loan purpose, rate spread, and applicant demographics; data must be reported annually to the appropriate federal agency.

SAFE Act requires MLOs to be licensed or registered, meet the 20-hour prelicensure education requirement, pass the NMLS test, and complete 8 hours of annual continuing education including 3 hours of federal law and 2 hours of ethics.

Flood Disaster Protection Act: lenders must require flood insurance when a structure securing a loan is in a Special Flood Hazard Area, provide notice to the borrower, and ensure coverage equals the lesser of the loan balance or the maximum NFIP limit.

Debt-to-income ratio = total monthly debt obligations (including proposed housing payment) divided by gross monthly income; conventional guidelines commonly cap at 43-50% depending on automated underwriting findings.

Loan-to-value (LTV) = loan amount divided by appraised value or purchase price, whichever is lower; combined LTV (CLTV) adds subordinate lien balances to the first mortgage.

Front-end ratio = proposed housing payment (PITI plus HOA and mortgage insurance) divided by gross monthly income; back-end ratio includes all recurring debt.

PITI = principal + interest + property taxes + hazard insurance; escrow accounts may also include mortgage insurance and flood insurance depending on the program and loan terms.

Fixed-rate mortgages keep the note rate constant for the full term; ARMs adjust per an index plus margin, subject to initial, periodic, and lifetime caps, with a disclosed lookback and adjustment date.

FHA loans typically require mortgage insurance premium (MIP) with an upfront premium plus annual premium; VA loans generally require no monthly mortgage insurance but charge a funding fee unless exempt.

Rate lock commits the lender to a specified rate for a set period; a lock extension typically costs a fee expressed in points, and a float-down option permits a lower rate if the market improves before closing.

Prepaid interest at closing is calculated from the closing date to the end of the month using a per-diem amount based on the note rate and loan balance.

NMLS is the nationwide licensing system; MLOs apply, renew, and maintain records through NMLS, and the NMLS ID must appear on loan documents and advertising as required by state and federal rules.

SAFE MLO test: 120 scored questions plus 10 unscored pretest questions, 190-minute testing window, and a passing score of 75% on the national component with state-specific components where applicable.

Prelicensure education is 20 hours: at least 3 hours federal law, 3 hours ethics, 2 hours nontraditional mortgage products, and the remainder in general mortgage origination or state-specific content.

Annual continuing education is 8 hours: at least 3 hours federal law, 2 hours ethics, 2 hours nontraditional mortgage products, and 1 hour of general elective, completed before the state renewal deadline.

Ethical duties include good faith and fair dealing, avoiding conflicts of interest, protecting nonpublic personal information under GLBA privacy rules, and not steering borrowers to products that benefit the originator at the borrower's expense.

License renewal requires timely CE completion, payment of renewal fees, and continued sponsorship; a lapsed license bars origination activity until reinstated under the applicable state rules.

Criminal background checks and credit reports are part of the NMLS application; certain disqualifying convictions or financial-responsibility findings can bar licensure under SAFE Act standards.

Test integrity rules prohibit sharing exam content or using unauthorized materials; the NMLS test may be retaken after a waiting period, and each attempt requires a new registration and fee.

Kansas Mortgage Business Act (K.S.A. 9-2201 et seq.) is administered by the Office of the State Bank Commissioner (OSBC); the OSBC licenses mortgage companies and registers loan originators through NMLS.

Kansas mortgage company license requires a surety bond sized by the OSBC based on loan volume; bond minimums scale upward as Kansas origination volume increases and must stay in force while licensed.

Kansas loan originator license requires prelicensure education, a passing SAFE test, a criminal background check, and sponsorship by a licensed Kansas mortgage company; the license is not self-standing.

OSBC examination and investigation authority includes subpoena of books and records; licensees must keep records available and respond to OSBC requests within the time specified in the statute or rule.

Kansas requires notification to the OSBC of changes in control, principal officers, or business address within the statutory window; unreported changes are a violation independent of any lending misconduct.

Advertising and solicitation by Kansas licensees must not be false or misleading; the OSBC may examine advertising and take disciplinary action for deceptive statements about rates, terms, or approval likelihood.

Grounds for denial, suspension, or revocation include fraud, dishonest dealing, SAFE Act violations, and failure to maintain the required bond or net worth; the OSBC may impose civil money penalties in addition to license action.

Kansas law prohibits unlicensed mortgage lending or brokering activity; each loan origination for compensation by an unlicensed person is a separate violation and supports cease-and-desist action.

RESPA Section 8 prohibits fees, kickbacks, or things of value for referrals of settlement service business; Section 8(c) safe harbor covers payments for goods or services actually performed at fair market value.

TILA-RESPA Integrated Disclosure rule: Loan Estimate delivered within 3 business days of application; Closing Disclosure delivered at least 3 business days before consummation, with a new 3-day wait if certain changed terms (APR, finance charge) increase beyond tolerance.

TRID tolerances: zero tolerance for lender credits, transfer taxes, and fees paid to affiliates of the creditor when the consumer is not permitted to shop; 10% cumulative tolerance for recording fees and shoppable services on the written list; unlimited tolerance for others.

ECOA/Regulation B prohibits discrimination in credit on prohibited bases and requires adverse action notice within 30 days of a completed application; appraisal copies must be provided promptly and no later than 3 days before consummation.

Ability-to-Repay/Qualified Mortgage (Regulation Z): ATR underwriting must consider and verify eight factors including income, employment, assets, debts, and DTI; QM status provides a safe harbor or rebuttable presumption depending on pricing.

HMDA (Regulation C) requires covered institutions to collect, record, and report loan-level data including loan purpose, rate spread, and applicant demographics; data must be reported annually to the appropriate federal agency.

SAFE Act requires MLOs to be licensed or registered, meet the 20-hour prelicensure education requirement, pass the NMLS test, and complete 8 hours of annual continuing education including 3 hours of federal law and 2 hours of ethics.

Flood Disaster Protection Act: lenders must require flood insurance when a structure securing a loan is in a Special Flood Hazard Area, provide notice to the borrower, and ensure coverage equals the lesser of the loan balance or the maximum NFIP limit.

Debt-to-income ratio = total monthly debt obligations (including proposed housing payment) divided by gross monthly income; conventional guidelines commonly cap at 43-50% depending on automated underwriting findings.

Loan-to-value (LTV) = loan amount divided by appraised value or purchase price, whichever is lower; combined LTV (CLTV) adds subordinate lien balances to the first mortgage.

Front-end ratio = proposed housing payment (PITI plus HOA and mortgage insurance) divided by gross monthly income; back-end ratio includes all recurring debt.

PITI = principal + interest + property taxes + hazard insurance; escrow accounts may also include mortgage insurance and flood insurance depending on the program and loan terms.

Fixed-rate mortgages keep the note rate constant for the full term; ARMs adjust per an index plus margin, subject to initial, periodic, and lifetime caps, with a disclosed lookback and adjustment date.

FHA loans typically require mortgage insurance premium (MIP) with an upfront premium plus annual premium; VA loans generally require no monthly mortgage insurance but charge a funding fee unless exempt.

Rate lock commits the lender to a specified rate for a set period; a lock extension typically costs a fee expressed in points, and a float-down option permits a lower rate if the market improves before closing.

Prepaid interest at closing is calculated from the closing date to the end of the month using a per-diem amount based on the note rate and loan balance.

NMLS is the nationwide licensing system; MLOs apply, renew, and maintain records through NMLS, and the NMLS ID must appear on loan documents and advertising as required by state and federal rules.

SAFE MLO test: 120 scored questions plus 10 unscored pretest questions, 190-minute testing window, and a passing score of 75% on the national component with state-specific components where applicable.

Prelicensure education is 20 hours: at least 3 hours federal law, 3 hours ethics, 2 hours nontraditional mortgage products, and the remainder in general mortgage origination or state-specific content.

Annual continuing education is 8 hours: at least 3 hours federal law, 2 hours ethics, 2 hours nontraditional mortgage products, and 1 hour of general elective, completed before the state renewal deadline.

Ethical duties include good faith and fair dealing, avoiding conflicts of interest, protecting nonpublic personal information under GLBA privacy rules, and not steering borrowers to products that benefit the originator at the borrower's expense.

License renewal requires timely CE completion, payment of renewal fees, and continued sponsorship; a lapsed license bars origination activity until reinstated under the applicable state rules.

Criminal background checks and credit reports are part of the NMLS application; certain disqualifying convictions or financial-responsibility findings can bar licensure under SAFE Act standards.

Test integrity rules prohibit sharing exam content or using unauthorized materials; the NMLS test may be retaken after a waiting period, and each attempt requires a new registration and fee.