Legislature(2019 - 2020)

2019-05-09 House Journal

Full Journal pdf

2019-05-09                     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.