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HB 104: "An Act relating to exemptions from mortgage loan originator licensing requirements; and providing for an effective date."

00                             HOUSE BILL NO. 104                                                                          
01 "An Act relating to exemptions from mortgage loan originator licensing requirements;                                    
02 and providing for an effective date."                                                                                   
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 06.60.015(b) is amended to read:                                                                   
05            (b)  The following [INDIVIDUALS] are exempt from the mortgage loan                                           
06       originator licensing requirements of this chapter:                                                                
07                 (1)  an individual who is a registered mortgage loan originator, when                               
08       acting for an entity described in (a)(1), (2), or (3) of this section;                                            
09                 (2)  an individual who offers or negotiates terms of a residential                                      
10       mortgage loan with or on behalf of an immediate family member of the individual; in                               
11       this paragraph, "immediate family member" means a spouse, child, stepchild, sibling,                              
12       stepsibling, parent, stepparent, grandparent, or grandchild;                                                      
13                 (3)  a [AN INDIVIDUAL] seller, including a natural person, estate,                              
14       trust, corporation, or another entity, that [WHO] offers or negotiates the terms of a                     
01       residential mortgage loan for the sale of residential property owned by the seller, if                        
02                      (A)  the loan is secured by a dwelling on the property;                                    
03                      (B)  the seller self-finances the loan;                                                        
04                      (C)  during any 12-month period, the seller finances five or                                   
05            fewer sales under this paragraph;                                                                        
06                      (D)  in the ordinary course of a business of the seller, the                                   
07            seller has not                                                                                           
08                           (i)  constructed the dwelling that secures the loan on                                    
09                 the property; or                                                                                    
10 (ii)  acted as a contractor for the construction of the                                                             
11                 dwelling that secures the loan on the property;                                                     
12 (E)  the loan has an interest rate that is fixed for the full                                                       
13            term of the loan;                                                                                        
14                      (F)  the loan does not                                                                         
15 (i)  have a payment schedule that results in negative                                                               
16                 amortization; or                                                                                    
17                           (ii)  allow or impose a prepayment penalty; and                                           
18 (G)  the seller determines that the purchaser has a                                                                 
19 reasonable ability to repay the loan [THAT SERVES AS THE                                                            
20            INDIVIDUAL'S RESIDENCE];                                                                                     
21 (4)  an individual who is a licensed attorney who negotiates the terms                                              
22 of a residential mortgage loan on behalf of a client as an ancillary matter to the                                      
23 attorney's representation of the client, unless the attorney is compensated by a lender,                                
24 a mortgage broker, or another mortgage loan originator or by an agent of a lender, a                                    
25       mortgage broker, or another mortgage loan originator.                                                             
26    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
27 read:                                                                                                                   
28       RETROACTIVITY. This Act is retroactive to July 1, 2008.                                                           
29    * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).