04/26/2019 03:15 PM House LABOR & COMMERCE

           HB 104-MORTGAGE LOAN ORIGINATOR LICENSING                                                                        
                                                                                                                                
3:48:47 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced  that the next order  of business would                                                               
be  HOUSE BILL  NO.  104,  "An Act  relating  to exemptions  from                                                               
mortgage  loan originator  licensing requirements;  and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
3:49:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  moved  to adopt  the  proposed  committee                                                               
substitute  (CS)  for  HB  104  labeled  31-LS0275\S,  Bannister,                                                               
4/10/19,  as  the  working  draft.   There  being  no  objection,                                                               
Version S was before the committee.                                                                                             
                                                                                                                                
3:49:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   TAMMIE   WILSON,   Alaska   State   Legislature,                                                               
introduced HB  104, as  prime sponsor,  and paraphrased  parts of                                                               
the sponsor  statement [included in the  committee packet], which                                                               
read in its entirety as follows [original punctuation provided]:                                                                
                                                                                                                                
     Currently  Alaska law  allows for  a person  to seller-                                                                    
     finance  their own  home, their  second home,  or their                                                                    
     vacation  home  if  it  is  not  considered  an  income                                                                    
     property. Exceptions  apply for  seller financing  to a                                                                    
     family member.                                                                                                             
                                                                                                                                
     Interior and more rural  community property owners have                                                                    
     parcels  with trailers  or cabins  on  them; some  with                                                                    
     water  and  electric,  some  without.  These  types  of                                                                    
     properties  are   historically  difficult   to  finance                                                                    
     through  the  traditional  mortgage  process  and  many                                                                    
     times  lenders require  more money  down, shorter  loan                                                                    
     terms, higher  interest rates, and in  some cases, will                                                                    
     not finance them at all.                                                                                                   
                                                                                                                                
     Those  wishing to  take on  the responsibility  of home                                                                    
     ownership  and establish  roots  in  the community  may                                                                    
     find, for  many reasons, that  they do not  qualify for                                                                    
     traditional mortgage. Seller  financing is another tool                                                                    
     that can be  utilized to make it affordable  for one to                                                                    
     realize their dream of having  a place they can finally                                                                    
     call their home.                                                                                                           
                                                                                                                                
     Seller financing  is a reasonable and  practical option                                                                    
     for both sellers and buyers of these type properties.                                                                      
                                                                                                                                
     HB 104  would give  more opportunity  for the  dream of                                                                    
     home  ownership  to  those   who  might  not  otherwise                                                                    
     realize it.                                                                                                                
                                                                                                                                
3:54:11 PM                                                                                                                    
                                                                                                                                
PATRICE  WALSH, Director,  Division  of  Banking and  Securities,                                                               
Department  of   Commerce,  Community  &   Economic  Development,                                                               
related  the  type  of  nonprofit  organizations  that  would  be                                                               
affected by the proposed exemption:  Habitat for Humanity, Alaska                                                               
Community   Development  Corporation   (Alaska  CDC),   Fairbanks                                                               
Neighborhood  Housing  Services,  Rural Alaska  Community  Action                                                               
Program  (RurAL  CAP), and  others.    She explained  that  these                                                               
organizations provide loans for projects  that are not offered by                                                               
traditional lenders.                                                                                                            
                                                                                                                                
REPRESENTATIVE  HANNAN questioned  whether  Habitat for  Humanity                                                               
needs  a licensed  mortgage lender  on staff  or if  they are  in                                                               
violation of state law.                                                                                                         
                                                                                                                                
MS. WALSH  stated that Habitat  for Humanity, as a  lender, would                                                               
need a  license.  She  noted that their mortgage  loan originator                                                               
would need a  license as well.  Currently, she  said, Habitat for                                                               
Humanity is  not licensed  and is  contracted through  Cook Inlet                                                               
Lending Center; however, the other nonprofits are licensed.                                                                     
                                                                                                                                
3:57:44 PM                                                                                                                    
                                                                                                                                
MS. WALSH,  in a follow-up  question from  Representative Hannan,                                                               
explained   that  federal   law   allows   for  these   nonprofit                                                               
exemptions, which  became effective  in a 2011  final rule.   She                                                               
said  that Alaska  has yet  to  revise their  law to  accommodate                                                               
this.                                                                                                                           
                                                                                                                                
3:58:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced that HB 104 was held over.