In March 2024, Kansas Governor Laura Kelly signed House Bill 2247 (“H.B. 2247”) into law. A significant aspect of the bill was the relocation of mortgage-related provision from the Kansas Uniform Consumer Credit Code (“KUCCC”) to the Kansas Mortgage Business Act (“KMBA”). Among the various changes, the bill added modernized language (such as adding the allowance for electronic signatures), removed references to precomputed transactions, amended licensing requirements, updated record keeping requirements, required mandatory disclosures for credit card surcharges, allowed for extended repayment plans for consumers who borrowed from a payday lender, and clarified language around “late fees” and their assessment.
The KUCCC covers loans and retail installment sales. H.B. 2247 changed the threshold amount covered by the KUCCC from $25,000 to a “threshold amount” which is defined to align with the annual increase in the consumer price index ($69,500 as of July 1, 2024). In addition, the bill modified the definition of “Annual Percentage Rate” and “Closed-End Credit” to tie the definitions explicitly to 15 USC § 1606 under the Truth in Lending Act.
The KMBA provides the regulatory framework for mortgage lenders operating within the state. H.B. 2247 included nine amendments to the KMBA, with many simply recodifying similar provisions from the KUCCC, such as definitions relating to mortgage business. H.B. 2247 also added new requirements for solicitations and advertisements to consumers and to interest rates which may not exceed 36% per annum.
H.B. 2247 largely became effective as of January 1, 2025. The bill repealed several sections of the KUCCC including Kan. Stat. Ann. § 16a-2-310, which was cited on the Kansas Dual Capacity disclosure (Form ID: KSDCD.MSC). The form is still required under Kan. Stat. Ann. § 9-2212(g), so the citation is being updated, but no other changes are applicable.
In addition, Kan. Stat. Ann. § 16a-3-207(3), which was the provision that required the Kansas UCCC High Loan-to-Value Notice (Form ID: KSCN.MSC) was repealed. Accordingly, DocMagic is removing the form so that it no longer returns for Kansas packages. The change is currently effective on our testing environment and will be effective in production beginning on February 6, 2025.
