8 Hours of 2024 Kentucky MLO Continuing Education

​​​​​​​The Commissioner of the Kentucky Department of Financial Institutions (DFI) requires mortgage licensees in this state to take a one-hour course on Kentucky mortgage lending rules as part of the licensees' annual continuing education requirement for license renewal. This course covers Kentucky mortgage topics for licensee continuing education.

The first module of this course outlines the branches within the DFI and reviews several definitions outlined in Kentucky Revised Statute (KRS) chapter 286, the regulation that defines mortgage lending services in this state. We'll review initial licensing requirements and the steps needed to maintain the authorized license.

The second module explains compliance requirements and disciplinary actions available to the commissioner. We'll outline prohibited conduct that licensees should avoid as well as explain conduct that are expected during the lending process. This course will also define the limitations on fees and the state usury regulations, actions that might result in license suspension, and the commissioner's available penalties that can be ordered against guilty licensees.

Topics and Learning Objectives

This course consists of two modules and a final exam:

1. Module 1: Kentucky DFI, State Law Definitions, and State License Law (15 minutes)
2. Module 2: Compliance and Disciplinary Actions (25 minutes)
3. Final exam (10 minutes)

Total study time: 1 credit hour (50 minutes)

This course will prepare Kentucky-licensed MLOs to:

• Generalize the structure of the Kentucky DFI
• Describe the powers and duties of the Commissioner of the DFI
• Review important term definitions, including those specific or unique to Kentucky regulations
• Identify the licensing and registration exemptions covered in Kentucky law
• Identify the requirements to obtain and maintain a license or registration
• Illustrate and avoid prohibited practices and conduct
• Summarize the Kentucky Residential Mortgage Fraud Act
• Define the required conduct that is expected in the course of day-to-day operations
• Give examples of appropriate - and inappropriate - fees and charges, including those for reverse mortgages
• Identify the criteria for usury in the Commonwealth of Kentucky
• Explain appraisal independence requirements through case study and review Kentucky-specific appraisal laws
• Recognize DFI disciplinary actions, including license denial, suspension or revocation, penalties and fines, and civil liability.

NMLS ID Required

You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.

If you already have an NMLS ID but don't remember what it is:

• Login into NMLS
• Click on the Composite View tab.
• Click View Individual on the sub-header row.
• The number that appears in parentheses after your name is your NMLS ID number.

If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center.

​​​​​​​This course will instruct mortgage loan originators on a number of regulations that they will have to comply with while taking part in their mortgage loan origination activities. Rules, such as those implemented by the Dodd-Frank Wall Street Reform and Consumer Protection Act, are set in place to protect the interest and well-being of consumers who apply for mortgages to purchase or refinance their properties. To ensure that their business practices satisfy the regulations adopted by federal laws, mortgage loan originators need to keep current on the guidelines published by entities such as the Consumer Financial Protection Bureau (CFPB).

Topics and Learning Objectives

This course consists of four sections and a final exam

1. Top 10 Federal Topics for 2024

2. Ethical Mortgage Advertisement Practices

3. The Fannie Mae HomeStyle® Renovation Loan

4. Final exam

Total study time: 7 credit hours (5 hours, 30 minutes)

Module 1: Top 10 Federal Topics for 2024

Study Time: 3 clock hours (150 minutes of federal law)

air lending along with compliance to the law, established rules, and implemented regulations is everyone’s responsibility. When compliance failures occur, everyone, including the customer, loses.

The topics outlined in this module are mandated by the NMLS and state regulators, covering the more egregious regulatory compliance failures recently discovered through various regulatory examinations, investigations, and audits.

Module 2: Ethical Mortgage Advertisement Practices

Study Time: 2 clock hours (100 minutes of ethics, fraud, and consumer protection)

Most, if not all of the regulations for the mortgage and banking industry are implemented to protect the consumer. That is what this module is about - consumer protection in advertising. Throughout this module, we hope to provide you a better understanding of the laws designed to protect consumers from untruthful mortgage advertising and understanding what you can and cannot do when advertising your loan products. Your proper understanding of these rules is vital when dealing with the public and promoting your services.

Module 3: The Fannie Mae HomeStyle Renovation Loan

Study Time: 2 clock hours (100 minutes of non-traditional mortgage)

In this next section, we will explore property rehabilitation loan products. Over the years, most of us have become familiar with the FHA 203(k) Rehab Loan. It was the loan program that many mortgage loan originators turned to when they needed a rehab loan program for their borrower client.

Today, there are other options available when it comes to rehabilitating a home for purchase and refinance that may more perfectly fit the rehab loan needs of the borrower. This module will introduce you to one such program: the Fannie Mae HomeStyle Rehab loan program. We'll explain the details of this program and compare it to the traditional 203(k) rehab loan.

NMLS ID Required

You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.

If you already have an NMLS ID but don't remember what it is:

• Login into NMLS
• Click on the Composite View tab.
• Click View Individual on the sub-header row.
• The number that appears in parentheses after your name is your NMLS ID number.

If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center