Title 808 | Chapter 016 | Regulation 010
PREVIOUS VERSION
The previous document that this document is based upon is available.
808 KAR 16:010.Licensing, registration, renewals and fees.
Section 1.
Definitions.(1)
"Applicant" is defined by KRS 286.12-010(2).(2)
"Commissioner" is defined by KRS 286.1-010(1).(3)
"Department" is defined by KRS 286.1-010(2).(4)
"Federal student education loan" is defined by KRS 286.12-020(1).(5)
"Student education loan servicer" and "servicer" are defined by KRS 286.12-010(13).Section 2.
Initial Application and Notice.(1)
A person providing notice to the commissioner as a federal student education loan servicer doing business in Kentucky as of July 14, 2022, shall submit:(a)
A completed NMLS Company Form available online at http://mortgage.nationwidelicensingsystem.org; and(b)
A completed NMLS Individual Form available online at http://mortgage.nationwidelicensingsystem.org;(2)
Federal student education loan servicers that begin conducting business in Kentucky after July 14, 2022, non-federal student education loan servicers, and federal student education loan servicers that also service non-federal student education loans shall submit:(a)
A completed NMLS Company Form available online at http://mortgage.nationwidelicensingsystem.org;(b)
A completed NMLS Individual Form available online at http://mortgage.nationwidelicensingsystem.org;(c)
All documents required on the New Application Checklist available online at http://mortgage.nationwidelicensingsystem.org;(d)
Either:1.
An audited financial statement prepared by a certified public accountant (CPA), in accordance with generally accepted accounting principles (GAAP), verifying a minimum net worth of at least$250,000; or2.
The following CPA prepared financial statements, if the request is made by the applicant and is deemed reasonable by the Commissioner based on the size, structure, and complexity of the applicant:a.
A Reviewed financial statement; orb.
A Compiled financial statement;(e)
An Electronic Surety Bond online at http://mortgage.nationwidelicensingsystem.org, which shall:1.
Include the name of the principal insured, which shall match the full legal name of applicant;2.
Be to the benefit of the department; and3.
Be in an amount of the lessor of:a.
$100,000; orb.
0.01 percent(.0001) of the amount of the Kentucky servicing portfolio; and(f)
A nonrefundable investigation fee of $5,000.Section 3.
Renewal Applications - All Licensees.(1)
A licensee applying for an annual renewal of a student education loan servicer license, on or before December 1st, shall:(a)
Submit required updates and attestations verifying that all information in the licensee's record, maintained in the NMLS operated by the State Regulatory Registry, LLC, is correct and available online at http://mortgage.nationwidelicensingsystem.org; and(b)
Pay the annual assessment fee to be established by commissioner's order pursuant to KRS 286.12-070(2). The minimum assessment fee shall be$5,000 and the maximum assessment fee shall be$20,000.(2)
The commissioner shall not approve an application for renewal of a student education loan servicer license if the fees, materials, or any information required by subsection (1) of this section is not received on or before December 1st.(3)
A licensee applying to reinstate a student education loan servicer license after December 1st shall submit all fees, materials, and information required by subsection (1) of this section.(4)
A licensee applying to reinstate a student education loan servicer license after December 31st shall:(a)
Submit all fees, materials, and information required by subsection (1) of this section; and(b)
Pay a late filing fee of $1,000 before January 31st of the following year that the renewal application was due.(5)
The commissioner shall not approve an application for reinstatement if the application, fees, or any required information is not received before January 31st of the following year that the renewal application was due.(6)
If a licensee submits an application or fees for renewal or reinstatement of a student education loan servicer license, but fails to timely complete the application and submit the fees as required by this section, the license shall automatically terminate as of January 31 of the following year that the renewal application was due.Section 4.
Change of address, name, control, or agent for service-All Licensees.(1)
A licensee that intends to change its address, name, or agent for service of process shall notify the commissioner in writing at least:(a)
Ten (10) days prior to the change of address or name; and(b)
Five (5) days prior to the change of agent for service of process.(2)
A licensee that intends to file for a change of control, as defined by KRS 286.12-010(6), shall notify the commissioner in writing within fifteen (15) days after learning of the proposed change of control and thirty (30) days prior to the effective date of the change of control and shall submit:(a)
For an existing licensee acquiring another licensee, a change of control fee of $1,000; or(b)
For all non-licensed entities, a change of control fee of $5,000.(3)
A licensee changing its address, name, control, or agent for service of process shall update this information in NMLS within the same time periods set forth in this section.Section 5.
Annual Report - All Licensees. Each licensee shall file an annual report electronically with the commissioner, on Form SLSCR-Student Loan Servicer Call Report, on or before November 1st of each year.Section 6.
Electronic Submission of Filings and Fees through the Nationwide Multistate Licensing System Operated by the State Regulatory Registry, LLC.(1)
A person applying for licensure, registration, renewal, or reinstatement pursuant to Sections 2, 3, or 4 of this administrative regulation shall electronically submit the following to NMLS, at http://mortgage.nationwidelicensingsystem.org, as part of the nationwide multi-state licensing system:(a)
All forms, updates, attestations, reports, and documentation required by Sections 2, 3, and 4 of this administrative regulation, as applicable; and(b)
All fees referenced in this administrative regulation.(2)
Any fees assessed by NMLS, to process the electronic submissions referenced in Sections 2, 3, or 4 of this administrative regulation shall be paid by the applicant.Section 7.
Incorporation by Reference.(1)
"SLSCR-Student Loan Servicer Call Report", January 2023, is incorporated by reference.(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Department of Financial Institutions, 500 Mero St 2SW19, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 5 p.m. This material may also be obtained from the department's Web site at http://www.kfi.ky.gov.HISTORY: (49 Ky.R. 1713; 2104; 50 Ky.R. 664; eff. 8-1-2023.)
FILED WITH LRC: August 1, 2023
CONTACT PERSON: Catherine Falconer, Counsel, 500 Mero Street, 2SW19, Frankfort, Kentucky 40601, phone 502-782-9052, fax 502-573-8787, email Catherine.Falconer@ky.gov and Marni Gibson, Acting Deputy Commissioner, Dept. of Financial Institutions, Mero Street, 2SW19, Frankfort, Kentucky 40601, phone 502-782-9053, fax 502-573-8787, email Marni.Gibson@ky.gov.
808 KAR 16:010.Licensing, registration, renewals and fees.
Section 1.
Definitions.(1)
"Applicant" is defined by KRS 286.12-010(2).(2)
"Commissioner" is defined by KRS 286.1-010(1).(3)
"Department" is defined by KRS 286.1-010(2).(4)
"Federal student education loan" is defined by KRS 286.12-020(1).(5)
"Student education loan servicer" and "servicer" are defined by KRS 286.12-010(13).Section 2.
Initial Application and Notice.(1)
A person providing notice to the commissioner as a federal student education loan servicer doing business in Kentucky as of July 14(a)
A completed NMLS Company Form available online at http://mortgage.nationwidelicensingsystem.org; and(b)
A completed NMLS Individual Form available online at http://mortgage.nationwidelicensingsystem.org;(2)
Federal student education loan servicers that begin conducting business in Kentucky after July 14, 2022, non-federal student education loan servicers, and federal student education loan servicers that also service non-federal student education loans(a)
A completed NMLS Company Form available online at http://mortgage.nationwidelicensingsystem.org;(b)
A completed NMLS Individual Form available online at http://mortgage.nationwidelicensingsystem.org;(c)
All documents required on the New Application Checklist available online at http://mortgage.nationwidelicensingsystem.org;(d)
Either:1.
An audited financial statement prepared by a certified public accountant (CPA), in accordance with generally accepted accounting principles (GAAP), verifying a minimum net worth of at least2.
The following CPA prepared financial statements, if thea.
A Reviewed financial statement; orb.
A Compiled financial statement;(e)
An Electronic Surety Bond online at http://mortgage.nationwidelicensingsystem.org, which shall:1.
Include the name of the principal insured, which shall match the full legal name of applicant;2.
Be to the benefit of the department; and3.
Be in an amount of the lessor of:a.
b.
0.01 percent(f)
A nonrefundable investigation fee ofSection 3.
Renewal Applications - All Licensees.(1)
A licensee applying for an annual renewal of a student education loan servicer license, on or before December 1st(a)
Submit required updates and attestations verifying that all information in the licensee's record, maintained in the NMLS operated by the State Regulatory Registry, LLC, is correct and available online at http://mortgage.nationwidelicensingsystem.org; and(b)
Pay the annual assessment fee to be established by commissioner's order pursuant to KRS 286.12-070(2). The minimum assessment fee shall be(2)
The commissioner shall not approve an application for renewal of a student education loan servicer license if the fees, materials, or any information required by subsection (1) of this section is not received on or before December 1st.(3)
A licensee applying to reinstate a student education loan servicer license after December 1st shall submit all fees,(4)(3)
A licensee applying to reinstate a student education loan servicer license after December 31st shall:(a)
Submit all fees,(b)
Pay a late filing fee(5)(4)
(6)
If a licensee submits an application or fees for renewal or reinstatement of a student education loan servicer license, but fails to timely complete the application and submit the fees as required by this section,Section 4.
Change of address, name, control, or agent for service-All Licensees.(1)
A licensee that intends to change its address, name, or agent for service of process shall notify the commissioner in writing at least:(a)
Ten (10) days prior to the change of address or name; and(b)
Five (5) days prior to the change of agent for service of process.(2)
A licensee that intends to file for a change of control, as defined by KRS 286.12-010(6), shall notify the commissioner in writing within fifteen (15) days after learning of the proposed change of control and thirty (30) days prior to the effective date of the change of control and shall submit:(a)
For an existing licensee acquiring another licensee, a change of control fee of(b)
For all non-licensed entities, a change of control fee of(3)
A licensee changing its address, name, control, or agent for service of process shall update this information in NMLS within the same time periods set forth in this section.Section 5.
Annual Report - All Licensees. Each licensee shall file an annual report electronically with the commissioner, on Form SLSCR-Student Loan Servicer Call Report, on or before November 1st of each year.Section 6.
Electronic Submission of Filings and Fees through the Nationwide Multistate Licensing System Operated by the State Regulatory Registry, LLC.(1)
A person applying for licensure, registration, renewal, or reinstatement pursuant to Sections 2, 3, or(a)
All forms, updates, attestations, reports, and documentation required by Sections 2, 3, and 4 of this administrative regulation, as applicable; and(b)
All fees referenced in this administrative regulation.(2)
Any fees assessed by NMLS, to process the electronic submissions referenced in Sections 2, 3, or 4 of this administrative regulationSection 7.
Incorporation by Reference.(1)
"SLSCR-Student Loan Servicer Call Report", January 2023, is incorporated by reference.(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Department of Financial Institutions, 500 Mero St 2SW19, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 5 p.m. This material may also be obtained from the department's Web site at http://www.kfi.ky.gov.HISTORY: (49 Ky.R. 1713; 2104; 50 Ky.R. 664; eff. 8-1-2023.)
FILED WITH LRC: August 1, 2023
CONTACT PERSON: Catherine Falconer, Counsel, 500 Mero Street, 2SW19, Frankfort, Kentucky 40601, phone 502-782-9052, fax 502-573-8787, email Catherine.Falconer@ky.gov and Marni Gibson, Acting Deputy Commissioner, Dept. of Financial Institutions, Mero Street, 2SW19, Frankfort, Kentucky 40601, phone 502-782-9053, fax 502-573-8787, email Marni.Gibson@ky.gov.