House Passes Bill to License Mortgage Lenders
|HB 162 Provides Consumer Protection for Homebuyers|
Posted: May 4, 2007
(Juneau) - The Alaska House of Representatives today 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.
Currently, a person working in mortgage lending in Alaska is not required to have a license, undergo a background check, and is not even required to be trained.
"Currently, a person working in mortgage lending in Alaska is not required to have a license, undergo a background check, and is not even required to be trained," Lynn said. "We license tattoo artists, hair stylists, and real estate agents, but not the person who originates the loan for probably the biggest purchase most of us will make in our lifetimes.
House Bill 162 corrects this problem by bringing this segment of the commercial banking industry under the purview of the Division of Banking and Securities.
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.
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