03/19/2009 01:30 PM Senate LABOR & COMMERCE

                    SB 149-MORTGAGE LENDING                                                                                 
                                                                                                                                
CHAIR PASKVAN announced the consideration of SB 149.                                                                            
                                                                                                                                
2:57:19 PM                                                                                                                    
LORI  HOVANEC,  Director,  Division of  Banking  and  Securities,                                                               
Department  of   Commerce,  Community  &   Economic  Development,                                                               
supported  SB 149.  The purpose  of it  is to  bring the  state's                                                               
current  mortgage  lending  statute   into  compliance  with  new                                                               
federal requirements.  Congress decided it was  important to have                                                               
a  national   component  to  the   licensing  of   mortgage  loan                                                               
originators.  So  last  year  they passed  the  Secure  and  Fair                                                               
Enforcement from  Mortgage Licensing Act  of 2008 (SAFE  Act). It                                                               
requires all  states to implement  mortgage law that  conforms to                                                               
it  by the  deadline of  July 30,  2009, and  to join  a national                                                               
mortgage   licensing   system   for   licensing   mortgage   loan                                                               
originators. She  said the  division is on  schedule to  join the                                                               
national mortgage  licensing system on  August 1, 20099  and they                                                               
need statutory authority  to do so as well as  the ability to pay                                                               
the  fee to  join  it.  Her main  concern  today  is meeting  the                                                               
deadline. The  result of  non-compliance is  that HUD  would take                                                               
over mortgage licensing in Alaska as required in the SAFE Act.                                                                  
                                                                                                                                
3:04:57 PM                                                                                                                    
CHAIR  PASKVAN held  SB 149  for further  work and  adjourned the                                                               
meeting at 3:04 p.m.