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Publications iconKansas Register

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Volume 44 - Issue 29 - July 17, 2025

State of Kansas

Office of the State Bank Commissioner
Consumer and Mortgage Lending Division

Notice of Hearing on Proposed Administrative Regulation

A public hearing will be conducted at 9:00 a.m. Tuesday, September 16, 2025, in the Bank Commissioner’s Astra Board Room, Fourth Floor, Jayhawk Tower Building, 700 SW Jackson, Topeka, KS 66603, to consider the proposed permanent amendment to Kansas Administrative Regulation 75-6-35, which interprets the Uniform Consumer Credit Code. On June 24, 2025, the State Rules and Regulations Board approved this regulation change on a temporary basis for up to 120 days.

This 60-day notice of the public hearing shall constitute a public comment period for the purpose of receiving written public comments on the proposed amended permanent regulation. All interested parties may submit written comments prior to the hearing by mailing them to the Office of the State Bank Commissioner, 700 SW Jackson, Suite 300, Topeka, KS 66603-3796 or by email to Brock.Roehler@osbckansas.org. During the public hearing, all interested parties will be given a reasonable opportunity to present their views orally or in writing regarding the proposed changes to K.A.R. 75-6-35. In order to provide all parties an opportunity to present their views, it may be necessary to request that each participant limit any oral presentation.

Copies of the proposed regulation and the economic impact statement may be obtained from the Office of the State Bank Commissioner by contacting Brock Roehler at 785-379-3890, Brock.Roehler@osbckansas.org, or at the mailing address given above. TTY calls may be made by contacting the Kansas Relay Center at 1-800-766-3777.

Any individual with a disability may request an accommodation in order to participate in the public hearing and may request the proposed amended regulation and economic impact statement in an accessible format. Requests for accommodations to participate in the hearing should be made at least five working days in advance of the hearing by contacting Brock Roehler at the Office of the State Bank Commissioner. The west entrance to the Jayhawk Tower Building is accessible and there is one accessible parking spot at 720 SW Jackson. There is additional accessible parking on the northwest corner of Jackson and 8th Street.

Copies of the proposed regulation can be viewed at the Office of the State Bank Commissioner’s website at http://www.osbckansas.gov. A summary of the proposed amended regulation and economic impact follows.

Summary

K.A.R. 75-6-35 is an administrative regulation promulgated by the Office of the State Bank Commissioner requiring a net worth for supervised loan licensees that engage in loans secured by real property. Loans secured by real property moved from the Uniform Consumer Credit Code to the Kansas Mortgage Business Act on January 1, 2025. In lieu of repealing this no-longer-applicable regulation, we have decided to modify it to apply to UCCC supervised lenders that remain regulated by the UCCC. Over the past couple of years, all lenders have faced financial stress due to the higher interest rates resulting in less loan origination. Amending this regulation will help our agency identify struggling supervised lenders and allow us to take actions sooner to ensure Kansas residents are not harmed by a lender that is facing financial difficulties. K.S.A. 16a-2-302 already requires any applicant to provide evidence that they will maintain satisfactory minimum net worth as determined by the administrator, but the statute does not state what the minimum net worth should be or specify when they shall provide the proof of continuing compliance. The amendments to K.A.R. 75-6-35 will fix both issues.

Economic Impact

This regulation is not expected to have a significant economic impact. Each supervised lender is also required to maintain a surety bond. It is not expected that a surety bond company would be willing to provide a surety bond to an entity that does not have sufficient minimum net worth as defined in this regulation. Supervised lenders will be required to submit proof on an annual basis along with their annual renewal.

Mike Enzbrenner
Deputy State Bank Commissioner
Consumer and Mortgage Lending Division

Doc. No. 053329

Secretary of State Seal