Legislature(2009 - 2010)BARNES 124
03/08/2010 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB354 | |
| HJR51 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 354 | TELECONFERENCED | |
| *+ | HJR 51 | TELECONFERENCED | |
HJR 51-PROPOSED FED. MORTGAGE LICENSING REGS
3:31:36 PM
CHAIR OLSON announced that the final order of business would be
HOUSE JOINT RESOLUTION NO. 51, Supporting certain changes to
proposed regulations to implement the Secure and Fair
Enforcement for Mortgage Licensing Act of 2008.
3:31:41 PM
JIM POUND, Staff, Representative Wes Keller, Alaska State
Legislature, explained that in 2008, the Congress passed the
Secure and Fair Enforcement for Mortgage Licensing Act (SAFE).
This legislation was intended to bring standards to home lending
in a "one size fits all" fashion. However, the federal Act
imposes rules that make it more difficult to secure a loan for
certain types of property in Alaska. This resolution would
point out the need to create exemptions for the Alaska housing
market. Cabin properties are often bought and sold in Alaska
between the seller and the purchaser with the seller carrying
the note. The proposed Department of Housing and Urban
Development (HUD) regulations under consideration would not
allow financing by the seller for instances such as when selling
remote cabins used for hunting in Alaska. Licensing
requirements at the state level are tied to federal regulation
and statute, he stated. Of real concern is a mandate that would
require states to adopt this language in state law or lose the
right to license and regulate mortgage loan originators. Thus,
what are commonly known as "conventional loans" may also be at
risk. The proposed HUD regulations need to broaden the
exemptions for seller financing to exempt all sellers who
provide financing for property they own, and cover individuals
who sell property they have inherited, even though it is not
their residence. Additionally, Alaska needs specific examples
that define brokerage firms and allowable activities. He
related proposed legislation is still pending in the
legislature, which will also need to pass or the state may risk
federal government action. Additionally, the SAFE Act requires
all brokers to be fingerprinted for review by the U.S.
Department of Justice, which did not seem necessary.
3:34:36 PM
CHAIR OLSON recalled passing a portion of the legislation needed
to address this issue during the last legislative session. He
related that members are familiar with the issues.
3:34:48 PM
DAVID SOMERS, Political Chair, Alaska Association of Realtors,
stated that the SAFE Act makes a lot of sense in some areas, but
the fact that it excludes the ability to sell and finance a
person's land does not make sense in Alaska. In fact, it does
not make sense in other areas of the country, and some other
states are also concerned, he stated. He also surmised that if
this resolution passes, it will help point out the errors of the
SAFE ACT. It is important to allow people to sell their own
land, and if owners are forced to go through a lender on small
land transactions, the costs range an additional 10 - 20 percent
of the value of the property or higher. People often choose to
owner-finance their own property and they should be able to do
so, he said. He urged members to endorse this resolution.
3:36:26 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HJR 51.
3:36:32 PM
REPRESENTATIVE NEUMAN moved to report HJR 51 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HJR 51 was reported from the
House Labor and Commerce Standing Committee.
3:36:53 PM