AN ACT relating to total net income limits on loans secured by a mortgage.

Amend KRS 286.8-125 to exempt loans for which the total points and fees do not exceed the threshold set forth in 12 C.F.R. sec. 1026.43(e)(3) from total net income limits; make technical amendments; direct that the Act applies to contracts entered into on or after the effective date of the Act.

Banks and Financial Institutions Loans, Credit, Interest, And Usury Real Estate

Introduced: February 3, 2026

Last action: April 8, 2026

(Acts Ch. 57)

In effect since July 15, 2026

Acts from the 2026 Regular Session that don't carry an emergency clause or set their own effective date took effect 90 days after the session adjourned (Ky. Constitution § 55).

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This bill changes Kentucky law to exempt certain mortgage loans from existing limits on total net income if the loan's points and fees stay below a specific federal threshold. It applies to mortgage contracts signed on or after the date the law takes effect. The change brings Kentucky's mortgage lending rules more in line with existing federal standards. Who it may affect: Kentuckians seeking home loans and the lenders and financial institutions that offer mortgage products.

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