SitNews - Stories in the News - Ketchikan, Alaska


Mortgage Lenders Licensure Bill Heads to Governor
Bill Provides Consumer Protection for Homebuyers


May 15, 2007
Tuesday AM

The Alaska Senate on Monday unanimously passed HB 162, a bill that will bring mortgage lenders working in Alaska under state regulation and licensure. Sponsored by Rep. Bob Lynn (R-Anchorage), the bill will provide a higher level of consumer protection for the thousands of Alaskans who obtain financing for home and property loans.

"We license working Alaskans from tattoo artists and hair stylists to lawyers and real estate agents, yet the people who help guide you during one of the most important decisions you will ever have to make ­ buying a home ­ currently do not," Lynn said. "HB 162 corrects this problem by bringing this portion of the commercial banking industry under the auspices of the Division of Banking and Securities. With the laws and regulations of mortgage lending and loans constantly in flux, and the advent of internet and on-line mortgage companies, it is eminently important to step in and establish guidelines and ground rules for lenders and agents."

HB 162 will require licensure of mortgage lenders, brokers, and loan originators working in Alaska. It sets up a fee schedule for the license, and requires an applicant to pass a competency exam to confirm that he or she has a basic understanding of loan industry duties, laws, regulations, and general knowledge of the loan process. The bill requires licensees to be bonded. The license is good for two years, and the bill provides a process for renewal, inactivation, and reactivation.

The bill provides a process by which complaints can be investigated and licensees disciplined. In addition to state statutes, the bill gives the division the authority to require compliance by a licensee with a number of federal mortgage lending and finance laws. The bill also enacts a list of prohibited activities, including certain types of refinancing, and gives the division the power of enforcement.

The bill establishes an originator surety fund as a separate fund in the state's general fund, which will be funded by fees charged to licensees, and which will cover consumer losses in the event of prohibited activity by a licensee.

HB 162 will be transmitted to the governor for signature.


Source of News:

Alaska House Majority


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Stories In The News
Ketchikan, Alaska