Understanding Kansas HB 2247: What It Means for Mortgage Brokers and Borrowers in Topeka

In March 2024, Kansas Governor Laura Kelly signed House Bill 2247 into law, introducing significant changes to the Kansas Mortgage Business Act (KMBA) and the Uniform Consumer Credit Code (UCCC). These changes, effective January 1, 2025, aim to modernize lending practices and enhance consumer protections across the state.

Key Changes Introduced by HB 2247

1. Increased Threshold for Consumer Loans

The threshold amount for consumer credit transactions has been raised from $25,000 to $69,500, aligning with the federal Truth in Lending Act. This expansion means more transactions will fall under state regulation, impacting both lenders and borrowers.

2. Enhanced Consumer Protections

HB 2247 introduces several consumer-friendly provisions:

• Electronic Communications: Allows for electronic signatures and communications, streamlining the lending process.
• Late Fee Regulations: Caps late fees and prohibits multiple fees on the same installment.
• Prepayment Rights: Consumers can prepay loans without penalties.
• High Loan-to-Value Disclosures: Requires lenders to provide additional disclosures for loans exceeding 100% loan-to-value ratios.

3. Licensing and Compliance Updates

The bill clarifies licensing requirements for mortgage companies and exempts certain entities from licensing. It also updates record-keeping requirements and mandates clear disclosures for credit card surcharges.

Implications for Topeka’s Mortgage Market

For mortgage brokers and lenders in Topeka, these changes necessitate a thorough review of current practices to ensure compliance. Borrowers will benefit from increased transparency and protections, making the mortgage process more secure and user-friendly.

How The Mortgage Squad Can Help

At The Mortgage Squad, we are committed to guiding our clients through these regulatory changes. Our team stays informed about legislative updates to provide accurate advice and ensure a smooth mortgage experience.

Ready to navigate the new mortgage landscape?Schedule a Free Consultation with our expert mortgage brokers in Topeka, KS.

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. For specific legal guidance, please consult a qualified attorney.