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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).