By Joshua Robinson

KU Statehouse Wire Service

TOPEKA – The House is debating a bill that aims to streamline the way mortgage lenders do business in Kansas.

Senate Bill 369 would make changes to the Kansas Mortgage Business Act (KMBA). The bill provides that anyone licensed under the current Kansas Uniform Consumer Credit Code would become licensed under KMBA. The change, legislative analysts say, would remove duplicate reporting requirements and fees and would streamline business for the state’s mortgage companies. Analysts say 150 companies that do business in Kansas would no longer be required to file duplicate forms and fees.

Supporters spoke about the bill Thursday at a hearing in the House Committee on Insurance and Financial Institutions. They said the proposed legislation updates and removes outdated terminology in state laws and seeks to simplify and reduce the regulatory burden on the mortgage business.

Jennifer Cook, deputy commissioner of consumer mortgage and lending in the Office of the State Bank Commissioner, told lawmakers that SB 369 makes common-sense changes. The bill, she said, cuts back on unnecessary reporting for mortgage companies but will continue to protect consumers in an ever-changing industry.

Rep. Scott Schwab, R-Olathe, sees SB 369 as a necessary update to existing laws. He said the bill will make the lending system more efficient. Also, he noted that technology has replaced work that lenders had to do in the past and the bill recognizes that.

“It’s just updating modernization and streamlining, and it happens a lot,” said Schwab, who chairs the House committee. “Sometimes when you get into banking or financial institutions you, end up having layer and layer of laws over 20 to 40 years, and you realize you have created duplications of paper work. Now, you have technology to have things filed digitally which makes it easier.”

If approved, SB 369 would take effect in fiscal year 2017. The Office of the State Bank Commissioner estimates it will decrease the license fee for revenue for the bank commissioner fee by $362,000 in 2017.

SB 369, which was introduced in January, was approved by the Senate in February. The vote was 40-0. If the House committee approves, the bill will go to the full House for a vote.

Edited by Maddy Mikinski