Enrolled HJR 51: Supporting certain changes to proposed regulations to implement the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.
00Enrolled HJR 51 01 Supporting certain changes to proposed regulations to implement the Secure and Fair 02 Enforcement for Mortgage Licensing Act of 2008. 03 _______________ 04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 WHEREAS the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 06 was enacted into law in 2008; and 07 WHEREAS the new Act directs states to adopt licensing and registration 08 requirements for loan originators that meet the minimum standards in the new Act, rather than 09 directing the federal Department of Housing and Urban Development to establish and 10 maintain a licensing system for loan originators; and 11 WHEREAS the federal Department of Housing and Urban Development has 12 proposed regulations to implement the new Act by setting out the minimum standards for the 13 states to meet when licensing loan originators; and 14 WHEREAS the proposed regulations should be changed to meet the mortgage 15 licensing needs of the state; and 16 WHEREAS proposed 24 C.F.R. 3400.103(e)(5) exempts from loan originator 17 registration requirements those individuals who offer or negotiate the terms of a loan secured
01 by their own residences; and 02 WHEREAS seller financing is crucial in certain markets, especially in times of 03 economic stress, and the Act is aimed only at loan originators who engage in lending 04 activities as a profession, not as an incidental and occasional aspect of their investment 05 activities; and 06 WHEREAS the seller financing exemption at proposed 24 C.F.R. 3400.103(e)(5) 07 should be broadened to exempt all sellers who provide financing for property they own, or to 08 exempt sellers who provide financing for up to 10 properties they own in a year; and 09 WHEREAS the seller financing exemption at proposed 24 C.F.R. 3400.103(e)(5) 10 should cover the heirs of a deceased individual who sell the inherited home even though it is 11 not their residence; and 12 WHEREAS the exemption for licensed real estate brokerage activities at proposed 24 13 C.F.R. 3400.103(e)(1) generally provides an exemption from the loan originator registration 14 requirements for an individual who performs only real estate brokerage activities and is 15 licensed or registered under state law; and 16 WHEREAS, under the exemption at proposed 24 C.F.R. 3400.103(e)(1), confusion 17 has arisen as to whether a licensed real estate practitioner who receives a real estate 18 commission from a lender selling property owned because of foreclosure, or otherwise, loses 19 that exemption, although covering the practitioner by the exemption appears to be the intent; 20 and 21 WHEREAS the confusion at proposed 24 C.F.R. 3400.103(e)(1) can be clarified by 22 providing in the regulation a specific example demonstrating that a licensed real estate 23 practitioner who receives a real estate commission from a lender selling property owned 24 because of foreclosure, or otherwise, loses that exemption only if the commission relates to 25 the origination of a loan; 26 BE IT RESOLVED that the Alaska State Legislature urges the United States 27 Department of Housing and Urban Development to change the proposed regulations that 28 implement the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 to 29 (1) broaden the proposed exemption for seller financing in proposed 24 C.F.R. 30 3400.103(e)(5) to 31 (A) exempt all sellers who provide financing for property they own, or
01 to exempt sellers who provide financing for up to 10 properties they own in a year; 02 and 03 (B) cover the heirs of a deceased individual who sell an inherited home 04 even though it is not their residence; and 05 (2) clarify, in a specific example for the exemption in proposed 24 C.F.R. 06 3400.103(e)(1) for licensed real estate brokerage activities, that a licensed real estate 07 practitioner who receives a real estate commission from a lender selling property owned 08 because of foreclosure, or otherwise, loses this exemption only if the commission relates to 09 the origination of a loan. 10 COPIES of this resolution shall be sent to the Honorable Shaun L. S. Donovan, 11 United States Secretary of Housing and Urban Development; and the Honorable Lisa 12 Murkowski and the Honorable Mark Begich, U.S. Senators, and the Honorable Don Young, 13 U.S. Representative, members of the Alaska delegation in Congress.