Kansas Administrative Regulations 17-24-1: Mortgage Business Acknowledgment Notice

17-24-1. Signed acknowledgment Notice; contents. Before a licensee enters into any contract for the provision ofservices or receives any compensation or promise ofcompensation fm a mortgage loan, the licensee shall acquire from the customer a signed acknov,ledgment containing only the follmving items: Pursuant to K.S.A. 2025 Supp. 9-2208, and amendments thereto, a licensee shall provide a written notice to each consumer containing the following:
(a) The date the notice was provided;
{hl the name and address ofthe mortgage business company; and (b) the name and position ofthe individual presenting the aclmowledgment to the customer for a signature; (c) A statement in at least IO-point boldface letters that reads as follows: "(name of licensee) is a mortgage business company licensed with the Kansas office of the state bank commissioner in accordance with the laws of the state of Kansas. This license does not represent an endorsement or recommendation of the licensee's products or services by the office ofthe state bank commissioner. As a consumer, you may submit a complaint or inquiry about this mortgage business company by delivering a written statement to the office of the state bank commissioner, 700 Jackson, Suite 300, Topeka, Kansas 66603. You may review the mortgage company's record and histo1y at the NMLS consumer access website."-;-aoo (d) the original signature of the customer or customers and the date on 1 ,vhich the signature or signatures were attached.(Authorized by K.S.A. 2025 Supp. 9-2208 and 2025 Supp. 9-2209; implementing K.S.A. 2025 Supp. 9-2208; effective, T-17-4-9-99, April 9, 1999; effective July 16, 1999; amended Oct. 3, 2003.,· =am=en=d=e=d'--"P,-_ _____.) APPROVED JAN l 5 2026 MAR O'- 2026 NOV 25 2025 ATTORNEY GENERAL 0 MSION OF TI-IE BUDGET DEPT. OF ADMINISTRATION

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Kansas Administrative Regulations
Economic Impact Statement (EIS)
Office ofthe State Bank Commissioner Brock Roehler 785-379-3892 Agency Agency Contact Contact Phone Number 17-24-1 IZI Permanent □ Temporary K.A.R. Number(s) Is/Are the proposed rule(s) and regulation(s) mandated by the federal government as a requirement for pruticipating in or implementing a federally subsidized or assisted program? O Yes Ifyes, continue to fill out the remaining form to be included with the regulation packet submitted in the review process to the Deprutment of Administration and the Attorney General. Budget approval is not required; however, the Division of the Budget will require submission of a copy ofthe EIS at the end ofthe review process. IZI No If no, do the total annual implementation and compliance costs for the proposed rnle(s) and regulation(s), calculated from the effective date of the rule(s) and regulation(s), exceed $1.0 million or more in implementation and compliance costs that are reasonably expected to be incwTed by or passed along to businesses, local governmental units and individuals as a result of the proposed rule and regulation over the initial five-year period following adoption of such rule(s) and regulation(s) (as calculated in Section III, F)? O Yes If"Yes," then the agency shall not adopt the rule(s) and regulation(s) until the rule(s) ru1d regulation(s) has been ratified by the Legislature with a bill, unless the proposed rule(s) and regulation(s) are: 1) mandated by the federal government as a requirement for pruticipating in or implementing a federally subsidized or assisted program, as described in K.S.A. 77-416(b)(l)(B), and amendments thereto; 2) temporary rule(s) and regulation(s) adopted pursuant to K.S.A. 77-722, and amendments thereto; or 3) rules and regulations adopted pursuant to K.S.A. 2-3710 (Kansas Agricultural Remediation Board). Continue to fill out the remaining EIS form to be included with the regulation packet in the review process to the Deprutment ofAdminish·ation and the Attorney General. The submitted EIS will be independently analyzed by the Division ofthe Budget for approval. IZI No If no, continue to fill out the remaining form to be included with the regulation packet submitted in the review process to the Department of Administration and the Attorney General. The submitted EIS will be analyzed by the Division ofthe Budget for approval. DOB APPROVAL STAMP APPROVED MAR OZ 2026 Revised 07.01.2024 _ _Q!VlSJQN.QE.IBEJ~_U.DGEI

Section I
Analysis, brief description, and cost and benefit quantification ofthe proposed rule(s) and regulation(s). If the approach chosen by the Kansas agency to address the policy issue is different from that utilized by agencies ofcontiguous states or ofthe federal government, the economic impact statement shall include an explanation of why the Kansas agency's rule and regulation differs. K.A.R. 17-24-1 currently requires m01tgage companies to retain a signed acknowledgment from each consumer. This regulation is being modified to remove the signature requirement and just provide a disclosure. Most mortgage companies have a compliant acknowledgment but do not always have a consumer sign the acknowledgement as currently required by this regulation. It is our belief that requiring consumers to sign the acknowledgement does substantially assist consumers in understanding their rights. Colorado does not regulate mo1tgages in the same manner as Kansas. Nebraska, Oklahoma, and Missouri do not require any signed acknowledgment or disclosure similar to Kansas.
Section II
Explain whether the proposed rule and regulation is mandated by federal law as a requirement for participating in or implementing a federally subsidized or assisted program and whether the proposed rules and regulations exceed the requirements of applicable federal law. The proposed rules and regulations are neither mandated by federal law nor is it a requirement for paiticipation in any federally subsidized or assisted program. The proposed rules and regulations work in conjunction with applicable federal laws. The requirements are mostly in line with the minimum federal law requirements with a few instances that exceed federal law that assist with an examination or provide document consumer protections as required by state law.
Section III
Agency analysis specifically addressing the following:
A. The extent to which the rule(s) and regulation(s) will enhance or restrict business activities and growth; The proposed amendments are expected to have a negligible positive impact on business activities and growth. The change to this regulation would remove the requirement that a consumer sign an acknowledgment, and the m01tgage company would only need to provide a notice in the disclosures. Compliance review will be lessened. DOB APPROVAL STAMP APPROVED MAR OL 2026 DIVISION OF THE BUDGET Revised 07.01.2024

B. The economic effect, including a detailed quantification of implementation and compliance costs, on the specific businesses, sectors, public utility ratepayers, individuals, and local governments that will be affected by the proposed rule(s) and regulation(s) and on the state economy as a whole; Mortgage companies will need to update forms to reflect the new regulation and will spend less time closing each mo1tgage due to no longer requiring a signature for the Kansas acknowledgment. This is expected to have a negligible decrease in compliance costs over time.
C. Businesses that would be directly affected by the proposed rule(s) and regulation(s);
Any mortgage company or loan officer who originates or closes any mottgage loan in the state of Kansas with Kansas consumers. D. Benefits ofthe proposed rule(s) and regulation(s) compared to the costs; Mo1tgage companies will have a reduced requirement to just provide a notice and will not be in violation of the regulation ifthe consumer fails to sign. E. Measures taken by the agency to minimize the cost and impact of the proposed rule(s) and regulation(s) on business and economic development within the State ofKansas, local government, and individuals; This regulation change only requires a one-time change to a disclosure and removes an ongoing requirement No additional savings can be made. F. An estimate ofthe total annual implementation and compliance costs that are reasonably expected to be incutTed by or passed along to businesses, local governments, or individuals. Note: Do not account for any actual or estimated cost savings that may be realized. Implementation and compliance costs determined shall be those additional costs reasonably expected to be incurred and shall be separately identifiedfor the 'affected businesses, local governmental units, and individuals. Costs to Affected Businesses - $0 Costs to Local Governmental Units - $0 Costs to Individuals - $0 Total Annual Costs - $0 (sum of above amounts) Give a detailed statement ofthe data and methodology used in estimating the above cost estimate. Click here to enter agency response. DOB APPROVAL STAMP APPROVED MAR OZ 2026 ___ OIVISIQNOF THE Revised 07.01.2024 .BUDGET

• Yes If the total implementation and compliance costs exceed $1.0 million or more in
  No implementation and compliance costs over the initial five-year period following adoption of such rule(s) and regulation(s) that are reasonably expected to be incurred IZ!Not by or passed along to businesses, local governmental units and individuals as a result Applicable of the proposed rule and regulation, did the agency hold a public hearing to find that the estimated costs have been accurately determined and are necessary for achieving legislative intent? If applicable, document when the public hearing was held, those in attendance, and any pertinent information from the hearing. Provide an estimate to any changes in aggregate state revenues and expenditures for the implementation of the proposed rule(s) and regulation(s), for both the cunent fiscal year and next fiscal year. $0. It is expected that examiners will spend less time checking for compliance with this issue and focus on other potential violations. Thus, no change in examination time. Provide an estimate of any immediate or long-range economic impact of the proposed rule(s) and regulation(s) on any individual(s), small employers, and the general public. If no dollar estimate can be given for any individual(s), small employers, and the general public, give specific reasons why no estimate is possible. $0 G. Ifthe proposed rule(s) and regulation(s) increases or decreases revenues ofcities, counties or school districts, or imposes functions or responsibilities on cities, counties or school districts that will increase expenditures or fiscal liability, describe how the state agency consulted with the League of Kansas Municipalities, Kansas Association of Counties, and/or the Kansas Association of School Boards. Revenues of cities, counties or school districts will not be affected. The amendments made are intended to streamline, amend, delete or incorporate regulations to ensure continuous compliance by the licensee and protection for the consumer. H. Describe how the agency consulted and solicited information from businesses, business associations, local governmental units, state agencies, or institutions and members ofthe public that may be affected by the proposed rule(s) and regulation(s) or may provide relevant information. For this round of regulation review, we requested comments from Rocket Mo1tgage, OneMain Financial, and Mortgage Bankers Association. No objections or concerns were noted. No local government ·unit, state agency, or institution was consulted.
  Section IV
  Does the Economic Impact Statement involve any environmental rule(s) and regulation(s)? DOB APPROVAL STAMP APPROVED MAR OZ 2026 OMSION OF THE BUDGET Revised 07.01.2024

• Yes Ifyes, complete the remainder of Section IV.
  IZI No Ifno, skip the remainder of Section IV.
  A. Describe the capital and annual costs ofcompliance with the proposed rule(s) and regulation(s), and the individuals or entities who would bear the costs. Click here to enter agency response. B. Describe the initial and annual costs of implementing and enforcing the proposed rule(s) and regulation(s), including the estimated amount of paperwork, and the state agencies, other governmental agencies, or other individuals who will bear the costs. Click here to enter agency response.
  C. Describe the costs that would likely accrue ifthe proposed rule(s) and regulation(s) are not adopted,
  the individuals or entities who will bear the costs and who will be affected by the failure to adopt the rnle(s) and regulation(s). Click here to enter agency response. D. Provide a detailed statement of the data and methodology used in estimating the costs used. Click here to enter agency response. DOB APPROVALSTAMP APPROVED MAR OZ 2026 DIVISION OF THE BUDGET Revised 07.01.2024