Memo MRM 2001-1
To: Mortgage Business Registrants
From: Kevin C. Glendening, Deputy Commissioner
Date: January 16, 2001
RE: Use of fictitious names on legal documents
The purpose of this memorandum is to clarify the opinion of this office regarding a registrant's use of fictitious names, also referred to as trade names, or dba (doing business as) names in loan contracts and other legal documents. K.S.A. 9-2208 (d) allows a registrant to conduct mortgage business in this state using only the name or names stated on the certificate of registration. We have interpreted this statute to allow our office to issue certificates of registration which include both the legal name and any fictitious names the company has adopted. Our office routinely receives questions from regulated entities as to the proper use of these names in loan transactions.
While a legal document or contract which references only the fictitious name of a registrant may be enforceable by either party to the contract, it could lead to confusion for consumers. Registrants therefore should use their full legal name in all legal documents prepared or used by a registrant when entering into transactions with Kansas consumers. It is acceptable to include a fictitious name that is properly noted on the registrant's certificate in legal documents, so long as the legal name is also included.
For example, assume the legal name of a registrant is "XYZ Financial Group," but with a dba of "XYZ Mortgage." The company has properly noted both names on the certificate. In all loan documents, the company should include the official legal name, "XYZ Financial Group," but may also include the company's dba, "XYZ Mortgage."
Should you have any questions or concerns please contact the Office of the State Bank Commissioner at (785) 296-2266.
