User login

New Kansas Bills Introduced on Subprime Loans and More

Three bills introduced in the Kansas House this past week would make changes of interest to the financial services industry. February 15 marked the last day for new bill introductions in non-exempt committees. However, bills can still be introduced in the budget, tax and Federal & State Affairs committees.

  • House Bill 2162 would remove the exemption for financial institutions in the Kansas Consumer Protection Act. Right now, financial institutions are exempted as a “supplier” in situations where the institution is selling repossessed property “as is.” The exemption exists to prevent lenders from being held to the same standard as auto dealers and others who routinely sell property for profit. The House Judiciary Committee held a hearing Feb. 11, but there’s been no movement to work the bill.
  • House Bill 2166 would require every high school student in Kansas to successfully complete one semester of personal financial literacy in order to be eligible for graduation. The House Education committee heard testimony February 12. The bill was introduced by Rep. Renee Erickson (R-Wichita).
  • House Bill 2254 would require Kansas banks to make a minimum amount of subprime loans, totaling at least 5% of the bank’s capital. Subprime loans would be defined as loans to borrowers with a nonexistent credit score or a credit score that’s less than 620. The bill has been referred to the House Financial Institutions Committee. It was introduced by Rep. Tim Hodge (D-Newton).

 

 

Vocab Legislation: