Kansas and Kentucky Enact Provisions Permitting Remote Work

The Kansas and Kentucky legislatures recently enacted bills that authorize employees to conduct mortgage related work from a remote location, subject to certain conditions. 

In Kansas, H.B. 2568, allows, among other updates, mortgage business to be conducted from a remote location so long as certain requirements are met.  Kentucky bill H.B. 643 similarly, along with other updates, permits employees to engage in mortgage lending from an “alternate work location” so long as the mortgage loan company or broker meets certain requirements.

While each bill has unique requirements (including relating to when and how employees may meet with borrowers), both laws include the following requirements:

• The company must have written policies for supervising employees who work from alternate work/remote locations;
• No physical business documents may be kept at the alternate work/remote location;
• Access to computer systems and customer information is governed by the company’s technology security plan; and
• At least annually the company reviews and certifies that employees working at alternate work/remote locations meet the appropriate standards to continue working from the alternate work/remote location. Proof of this review must be provided to the regulator upon request.

The Kansas bill takes effect July 1, 2022, and the Kentucky bill takes effect July 14, 2022.