This bill amends K.S.A. 2025 Supp. 16-207 to prohibit the assessment of a prepayment penalty against any party for a home loan made primarily for personal, family, or household purposes if the prepayment occurs more than six months after the execution of the loan note. The existing language that allowed for such penalties has been deleted, and the new provision clarifies that this prohibition applies specifically to loans secured by a real estate mortgage.

Additionally, the bill outlines the conditions under which lenders may collect fees and expenses related to the loan process, while also detailing the consequences for contracting interest rates above the authorized limit. The bill excludes certain transactions from these provisions, including those governed by the Kansas mortgage business act and the uniform consumer credit code. The existing section of K.S.A. 2025 Supp. 16-207 is repealed, and the act will take effect upon publication in the statute book.

Statutes affected:
As introduced: 16-207, 1-101