Legislature(2023 - 2024)
2024-01-18 Senate Journal
Full Journal pdf2024-01-18 Senate Journal Page 1362 SB 191 SENATE BILL NO. 191 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act relating to the power of the Alaska Housing Finance Corporation to make or purchase mortgage loans." was read the first time and referred to the Labor and Commerce Committee. The following fiscal information was published today: Fiscal Note No. 1, zero, Department of Revenue Governor's transmittal letter dated January 16: Dear President Stevens: Under the authority of Article III, Section 18 of the Alaska Constitution, I am transmitting a bill relating to the power of the Alaska Housing Finance Corporation (Corporation) to make or purchase mortgage loans for single family residences. This bill will provide Alaskans with greater access to quality housing by removing current restrictions on the Corporation's power to make, purchase, and participate in the purchase of first and second mortgage loans for single family residences. The Corporation’s primary business is to provide home loans to Alaskans. In making or purchasing these loans, the Corporation competes with government sponsored entities, including the Federal National Mortgage Association (Fannie Mae) which can offer home loans with down payments as low as three percent. However, many families in Alaska cannot qualify for a loan from a government sponsored entity and existing statutory restrictions prohibit the Corporation from purchasing or making a first mortgage loan that has a loan-to-value ratio that exceeds 95 percent. Removal of this limitation will allow the Corporation to modify its residential lending programs to provide additional loan opportunities for these families. 2024-01-18 Senate Journal Page 1363 The bill would also simplify the Corporation's ability to make or purchase second mortgages by removing duplicative language regarding loan-to-value calculations and limits tied to loans purchased by Fannie Mae for similar housing. If the bill passes, simplified statutory language would prohibit the Corporation from making, purchasing, or participating in the purchase of a second mortgage on a single-family residence that, when combined with the principal balance of a first mortgage loan on the property, has a loan-to-value- ratio that exceeds 90 percent. I urge your prompt and favorable action on this measure. Sincerely, /s/ Mike Dunleavy Governor