04/16/2009 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 221(L&C)                                                                                                
                                                                                                                                
     "An  Act relating  to the state's  participation  in the                                                                   
     federal   Nationwide  Mortgage   Licensing  System   and                                                                   
     Registry,  and   to  mortgage  lending   regulation  and                                                                   
     licensing; and providing for an effective date."                                                                           
                                                                                                                                
9:56:39 AM                                                                                                                    
                                                                                                                                
KONRAD JACKSON,  STAFF, REPRESENTATIVE  KURT OLSON,  reported                                                                   
that  at the  end of  July 2008,  new federal  law went  into                                                                   
effect called  the Secure and  Fair Enforcement  for Mortgage                                                                   
Licensing  Act  (SAFE).  The   act  includes  the  Nationwide                                                                   
Mortgage Licensing  System and  Registry. House Bill  221 was                                                                   
the  minimum  that  the  state   needs  to  comply  with  the                                                                   
licensing  system. The  deadline for  compliance is  July 30,                                                                   
2009.                                                                                                                           
                                                                                                                                
LORIE HOVANEC, DIRECTOR, DIVISION  OF BANKING AND SECURITIES,                                                                   
DEPARTMENT OF  COMMERCE, COMMUNITY AND ECONOMIC  DEVELOPMENT,                                                                   
noted that the  division licenses mortgage  loan originators,                                                                   
professionals,  and  their  companies,   and  administer  the                                                                   
state's current  mortgage lending statute. She  reported that                                                                   
a  number  of  years  ago,  state  regulators  developed  the                                                                   
national    mortgage    licensing     system.    Since    its                                                                   
implementation, 30  states have joined. Alaska  would like to                                                                   
join August  1 and needs the  legislation in order to  do so.                                                                   
State regulators are in favor  of the provision. She referred                                                                   
to her April 14, 2009 memo describing  the benefits of HB 221                                                                   
(Copy on File).                                                                                                                 
                                                                                                                                
Senator Thomas  queried the benefit  to the state of  being a                                                                   
member of  the network. Ms.  Hovanec responded that  the main                                                                   
benefit is that  there would be a database  of the activities                                                                   
and  disciplinary actions  regarding  mortgage companies  and                                                                   
professionals  doing business  in  Alaska.  She compared  the                                                                   
provision with  the security system  in place  for investment                                                                   
advisors.                                                                                                                       
                                                                                                                                
10:00:36 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman asked if the  department supported the bill.                                                                   
Ms. Hovanec responded yes.                                                                                                      
                                                                                                                                
Senator Huggins asked how many  states have complied with the                                                                   
federal act. Ms.  Hovanec replied that approximately  15 have                                                                   
complied  and others  have legislation  pending. Some  states                                                                   
have joined  the licensing system  and do not appear  to need                                                                   
statutory enabling to do so.                                                                                                    
                                                                                                                                
Co-Chair Stedman  mentioned the fiscal note  for $98,000 from                                                                   
the   Department   of  Commerce,   Community   and   Economic                                                                   
Development.                                                                                                                    
                                                                                                                                
CS HB  221(L&C) was HEARD and  HELD in Committee  for further                                                                   
consideration.