Kansas Groups Seek Repeal of Mortgage Fee
Associated Press - November 25, 2013 7:06 pm
A new report by the Kansas University Center for Banking Excellence has determined that the state of banking in Kansas is greatly improved and the industry positioned to thrive despite new regulatory standards.
Realtors and bankers in Kansas want to do away with county fees to register property bought on a mortgage.
The groups say the mortgage registration fee discriminates against people who borrow money to buy homes or business property.
The Wichita Eagle reports that county officials want to keep the fee. They say without the fee it’s estimated that counties across the state will lose about $47 million a year in revenue.
The Kansas Bankers Association also says the registration fee is actually a tax because nearly all the amount charged goes to the county’s general fund and doesn’t reflect the cost of recording the document.
Counties say increased property taxes to make up for lost revenue would be a bigger burden on homeowners and businesses than the fee.
(Information from: The Wichita Eagle