40-3510. Discrimination in issuing or extending insurance prohibited; requirements on lender by insurance company authorized; examination of borrower and appraisal report required prior to writing ins - Kansas Statutes

40-3510

Chapter 40.--INSURANCE Article 35.--MORTGAGE GUARANTY INSURANCE COMPANIES

      40-3510.   Discrimination in issuing or extending insurance prohibited;requirements on lender by insurance company authorized; examination of borrowerand appraisal report required prior to writing insurance.(a) No mortgage guaranty insurance company may discriminate in the issuanceor extension of mortgage guaranty insurance on the basis of the applicant'ssex, marital status, race, color, creed or national origin.

      (b)   Nothing in this act shall be construed as limiting the right of anymortgage guaranty insurance company to impose reasonable requirements uponthe lender with regard to the terms of any note or bond or other evidenceof indebtedness secured by a mortgage or deed of trust, such as requiringa stipulated down payment by the borrower.

      (c)   No policy of mortgage guaranty insurance excluding policies ofreinsurance,shall be written unless and until the insurer or the lender, in compliancewith underwriting directives from the insurer and subject to periodicunderwriting audits by the insurer shall have conducted a reasonableand thorough examination of: (1) The evidence supporting credit worthinessof the borrower; and (2) the appraisal report reflecting market evaluationof the property and shall have determined that prudent underwriting standardshave been met.

      History:   L. 1977, ch. 154, § 10;L. 1995, ch. 55, § 1; July 1.