14 Dec Alaska Legislative Update
The Alaska legislature recently amended its laws governing mortgage licensing, effective January 1, 2017.
Alaska House Bill 12
An individual required to be licensed as a mortgage loan originator must:
- Register with the registry and maintain a valid unique identifier issued by the Nationwide Multistate Licensing System and Registry (“NMLS”);
- Work under either an exclusive contract for, or as an employee of, a mortgage licensee or an exclusive contract for a registered depository institution; and
- Be sponsored in NMLS by a mortgage licensee under a sponsorship approved in NMLS by the Department of Commerce, Community, and Economic Development (“Department”) or be sponsored by a registered depository institution. “Sponsored” means authorized to conduct business as a mortgage loan originator under the supervision of a mortgage licensee or a registered depository institution.
A depository institution may sponsor a mortgage loan originator if the depository institution is registered with the Department, has an exclusive written contract to sponsor a licensed mortgage loan originator, is otherwise in compliance with relevant laws, and satisfies all other requirements. Registration does not affect the exemption of the depository institution.
To register, a depository institution must:
- Complete a registration form established by the Department; the form must identify the mortgage loan originator to be sponsored by the depository institution and each mortgage lending location of the registered depository institution; and
- Pay a registration fee established by the Department.
Registration expires after one year. To renew a registration, the depository institution must file a renewal application with the Department and pay a renewal fee established by the Department.
The Department may deny an initial or renewal registration or may suspend or revoke the registration of a depository institution that is registered if the Department determines that the depository institution:
- Failed to satisfy any requirement;
- Failed to supervise its sponsored mortgage loan originator adequately; or
- Made a material misstatement or withheld information on the application for registration, on an application for the renewal of the registration, or on another document required to be filed with the Department.
A registered depository institution must meet the same requirements as other mortgage licensees in regard to surety bonds, filing of reports, record-keeping, and out of state offices, and are subject to the same suspension, revocation and other remedies for wrong-doing that may be imposed by the Department.
A federal, state, or local government agency, including an agency that arranges or provides financing for mortgage loans, is now exempt from the mortgage lender or mortgage broker licensing requirements.