HB 552 requires a new disclosure to be provided to the borrower at closing regarding the Homeownership Protection Center.  The Center was established pursuant to HB 552 to provide counseling to homeowners who are in default, or in danger of default, on their home loan.

Provided the Center is operational on January 1, 2009, mortgage lenders, including banks, credit unions and consumer loan companies, will be required to provide to the homeowner any brochure, pamphlet, or other brief document prepared or approved by the Kentucky Housing Corporation that describes the services provided by the Center.  Lenders shall retain one copy in their files.

As the Kentucky Housing Corporation has already approved a one-page disclosure describing the services that the Center provides, this disclosure will appear in all DocMagic lender-originated closing packages even though mortgage lenders are not required to provide this disclosure until January 1, 2009.  For additional information about the Center and the required disclosure, please visit this page from the Kentucky Department of Financial Institutions' website.