Additional charges allowed

(a) In addition to the finance charge permitted by K.S.A. 2025 Supp. 9-2223 through 9-2234, and amendments thereto, for covered transactions, a mortgage company may contract for and receive the following additional charges for such covered transactions: (1) Closing costs incurred in connection with the covered transaction that are not included in the prepaid finance charges for the covered transaction; (2) late fees permitted pursuant to K.S.A. 2025 Supp. 9-2230, and amendments thereto; (3) charges for other benefits, including insurance, conferred on the consumer if the benefits are of value to the consumer, and if: (A) The charges are reasonable in relation to the benefits; (B) the benefits are of a type that is not for credit and are excluded as permissible additional charges from the finance charge by rules and regulations adopted by the commissioner; or (4) a service charge for an insufficient payment method not to exceed $30 subject to the limitations contained in this subsection. (A) Notice shall be given to a consumer providing an insufficient payment method either by: (i) United States first class mail addressed to the consumer's last known address; or (ii) a clear notice of the insufficient payment method charge on the consumer's regular monthly statement. (B) If the consumer does not pay the amount of the insufficient payment plus the service charge to the payee within 14 days from the giving of notice, the payee may add the service charge to the outstanding balance of such indebtedness of the consumer to draw interest at the contract rate applicable to such indebtedness. (b) With respect to an open-end covered transaction, a mortgage company may charge the following fees in an amount not to exceed that agreed to by the consumer: (1) Fees on a monthly or annual basis; (2) over-limit fees; and (3) cash advance fees. (c) The fees permitted under subsection (b) are in addition to any finance charges or any additional charges permitted by K.S.A. 2025 Supp. 9-2223 through 9-2234, and amendments thereto. (d) A mortgage company may charge a borrower up to $5 per payment when the borrower makes a single installment payment through electronic methods for a covered transaction, including by authorizing the mortgage company, verbally or in writing, to initiate the payment, subject to the following limitations. No charge shall be assessed: (1) If a late fee is assessed on the same installment; or (2) where the consumer has agreed in writing to make all scheduled payments through the use of electronic methods. (e) This section shall be a part of and supplemental to the Kansas mortgage business act.