[kmeade]

If you have two single family dwellings securing a loan for an individual, do both properties need to be listed on the “Protect My Kentucky Home Disclosure”?

[rcooper]

KRS 286.2-020 states that the disclosure must be given to the homeowner, while the Kentucky Homeowner Protection Center website says to give a copy to the borrower. I would follow the KRS and provide it to the homeowner and since I believe the intent of law is to inform borrower (who in most cases is the homeowner), I would provide a copy to the borrower as well. If you happen to over-disclose there is no harm done.

Here are links to the KRS and KHPC website:
https://www.lrc.ky.gov/statutes/chapter.aspx?id=38624
https://www.kfi.ky.gov/industry/Pages/khpc.aspx

[kmeade]

I have looked at all the information above, but I still don’t see information concerning two dwellings as collateral on one loan, do both addresses have to be listed on the form. I can’t see where it even says the address has to be on the form, but we were cited in a prior exam because the lender had not filled in the property address on the form (our loan software does not fill in the address). So if we have two properties, do both have to be listed on the form or just one address?

[rcooper]

It isn’t spelled out in the KRS, but I believe it is intended for those who could possibly lose their home. The KRS states that the mortgagee must give the document(s) approved by the Kentucky Homeowner Protection Center to the homeowner, while the KHPC website says to give it to residential borrowers. Since the notice required has a place for the address we assume it needs to be included. In this case there is an additional homeowner other than the borrower whose home is being used as collateral. Although it isn’t clearly stated, I believe the best practice would be to give it to both in this circumstance.

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