Legislature(2019 - 2020)
2019-05-09 House Journal
Full Journal pdf2019-05-09 House Journal Page 0952 HB 104 The following was read the second time: HOUSE BILL NO. 104 "An Act relating to exemptions from mortgage loan originator licensing requirements; and providing for an effective date." with the: Journal Page L&C RPT CS(L&C) NT 2DP 5NR 765 FN1: ZERO(CED) 766 Representative Thompson moved and asked unanimous consent that the following committee substitute be adopted in lieu of the original bill: CS FOR HOUSE BILL NO. 104(L&C) "An Act relating to exemptions from mortgage lender, mortgage broker, and mortgage loan originator licensing requirements; and providing for an effective date." 2019-05-09 House Journal Page 0953 There being no objection, it was so ordered. Amendment No. 1 was offered by Representative Wilson: Page 1, line 4: Delete "AS 06.60.015" Insert "AS 06.60.015(a)" Page 1, line 5: Delete "Sec. 06.60.015. Exemptions." Page 2, line 1, through page 3, line 15: Delete all material and insert: "* Sec. 2. AS 06.60.015(b) is amended to read: (b) The following [INDIVIDUALS] are exempt from the mortgage loan originator licensing requirements of this chapter: (1) an individual who is a registered mortgage loan originator, when acting for an entity described in (a)(1), (2), or (3) of this section; (2) an individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual; in this paragraph, "immediate family member" means a spouse, child, stepchild, sibling, stepsibling, parent, stepparent, grandparent, or grandchild; (3) an individual seller who offers or negotiates terms of a residential mortgage loan secured by a dwelling that serves as the individual's residence; (4) a seller, including a natural person, estate, trust, corporation, or another entity, that offers or negotiates the terms of a residential mortgage loan for the sale of residential property owned by the seller, if (A) the loan is secured by a dwelling on the property; (B) the seller self-finances the loan; (C) during any 12-month period, the seller finances five or fewer sales under this paragraph; (D) in the ordinary course of a business of the seller, the seller has not (i) constructed the dwelling that secures the loan on the property; or 2019-05-09 House Journal Page 0954 (ii) acted as a contractor for the construction of the dwelling that secures the loan on the property; (E) the loan has an interest rate that is fixed for the full term of the loan; (F) the loan does not (i) have a payment schedule that results in negative amortization; or (ii) allow or impose a prepayment penalty; and (G) the seller determines that the purchaser has a reasonable ability to repay the loan; (5) an individual who is a licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, a mortgage broker, or another mortgage loan originator or by an agent of a lender, a mortgage broker, or another mortgage loan originator; (6) an employee of a federal, state, or local government agency that is exempt under (a)(4) of this section from the mortgage lender or mortgage broker licensing requirements of this chapter. * Sec. 3. AS 06.60.015(b), as amended by sec. 2 of this Act, is amended to read: (b) The following are exempt from the mortgage loan originator licensing requirements of this chapter: (1) an individual who is a registered mortgage loan originator, when acting for an entity described in (a)(1), (2), or (3) of this section; (2) an individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual; in this paragraph, "immediate family member" means a spouse, child, stepchild, sibling, stepsibling, parent, stepparent, grandparent, or grandchild; (3) an individual seller who offers or negotiates terms of a residential mortgage loan secured by a dwelling that serves as the individual's residence; (4) a seller, including a natural person, estate, trust, corporation, or another entity, that offers or negotiates the terms of a residential mortgage loan for the sale of residential property owned by the seller, if 2019-05-09 House Journal Page 0955 (A) the loan is secured by a dwelling on the property; (B) the seller self-finances the loan; (C) during any 12-month period, the seller finances five or fewer sales under this paragraph; (D) in the ordinary course of a business of the seller, the seller has not (i) constructed the dwelling that secures the loan on the property; or (ii) acted as a contractor for the construction of the dwelling that secures the loan on the property; (E) the loan has an interest rate that is fixed for the full term of the loan; (F) the loan does not (i) have a payment schedule that results in negative amortization; or (ii) allow or impose a prepayment penalty; and (G) the seller determines that the purchaser has a reasonable ability to repay the loan; (5) an individual who is a licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, a mortgage broker, or another mortgage loan originator or by an agent of a lender, a mortgage broker, or another mortgage loan originator; (6) an employee of a federal, state, or local government agency that is exempt under (a)(4) of this section from the mortgage lender or mortgage broker licensing requirements of this chapter; (7) an employee of a bona fide nonprofit organization if the employee acts as a mortgage loan originator only with respect to (A) the employee's duties to the bona fide nonprofit organization; and (B) residential mortgage loans that have terms that are favorable to the borrower by being consistent with mortgage loan origination for a public or charitable purpose rather than in a commercial context." Renumber the following bill sections accordingly. 2019-05-09 House Journal Page 0956 Page 4, following line 31: Insert a new bill section to read: "* Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSITION: REGULATIONS. The Department of Commerce, Community, and Economic Development may adopt regulations necessary to implement the changes made by AS 06.60.015(a)(5), added by sec. 1 of this Act, AS 06.60.015(b)(7), added by sec. 3 of this Act, AS 06.60.015(c) - (e), added by sec. 4 of this Act, and AS 06.60.990(36), added by sec. 5 of this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of the section being implemented." Renumber the following bill sections accordingly. Page 5, line 3: Delete "AS 06.60.015(b)(3), as amended by sec. 1" Insert "AS 06.60.015(b)(4), added by sec. 2" Page 5, line 5: Delete "This Act takes" Insert "Sections 2, 6, and 7 of this Act take" Page 5, following line 5: Insert a new bill section to read: "* Sec. 9. Except as provided by sec. 8 of this Act, this Act takes effect January 1, 2020." Representative Wilson moved and asked unanimous consent that Amendment No. 1 be adopted. Representative Eastman objected and withdrew the objection. There being no further objection, Amendment No. 1 was adopted. Representative Rasmussen moved and asked unanimous consent to abstain from voting because of a conflict of interest. Objection was heard, and she was required to vote. Representative Thompson moved and asked unanimous consent that CSHB 104(L&C) am be considered engrossed, advanced to third reading, and placed on final passage. 2019-05-09 House Journal Page 0957 There was objection. CSHB 104(L&C) am will advance to third reading on tomorrow's calendar.