TITLE: Kansas Amends Supervised Lender Surety Bond Requirements and Regulatory Oversight Provisions
BODY:
On March 2, 2026, Kansas's Office of the State Bank Commissioner amended Kansas Administrative Regulation (K.A.R.) 75-6-31, which establishes surety bond requirements for supervised lenders operating in the state.
The amendment modifies bond requirements for supervised loan license applicants and licensees. For lenders engaging in loans secured by real property interests or contracts for deed, the requirement is $250,000 for the first licensed place of business, plus $25,000 for each additional location, or $300,000 if the lender originated more than $50,000,000 in such loans during the previous calendar year. For all other supervised lenders, the requirement is $100,000 for the first licensed place of business, plus $25,000 for each additional location. The total bond requirement cannot exceed $300,000 unless the administrator determines special circumstances warrant a higher amount, capped at $1,000,000.
The regulation establishes criteria for determining when higher bond amounts are necessary, including consideration of whether the applicant's business involves technology or methods requiring additional regulatory oversight; whether the applicant or licensee has faced regulatory or disciplinary actions from state or federal bodies; and whether the applicant's structure, business activities, or operations present elements of risk requiring additional oversight.
The amendment removes language regarding real property and contracts for deed, as these statutes have been transferred to the Kansas Mortgage Business Act. The Office of the State Bank Commissioner consulted with Rocket Mortgage, OneMain Financial, and the Mortgage Bankers Association during the review process, with no objections noted. The regulation carries no anticipated economic impact on affected businesses or local governments.
The amendment became effective on March 2, 2026.