Legislature(2009 - 2010)
04/09/2009 01:09 PM Senate L&C
| Audio | Topic |
|---|---|
| Start | |
| SB187 | |
| HB129 | |
| SB12 | |
| SB61 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 187-MORTGAGE LENDING REGULATION
1:11:02 PM
CHAIR PASKVAN announced SB 187 to be up for consideration.
LORRIE HOVANICK, Director, Division of Mortgage, Lending and
Securities, Department of Commerce, Community & Economic
Development, said this bill brings state statutes into alignment
with federal law. It was brought forward to allow the state to
participate in the National Mortgage Licensing System (NMLS)
registry and to adopt emergency regulations to comply and
institute this participation.
She said that primarily the regulations that will need changing
involve the collection of fees from licensees to participate in
the NMLS system and to allow applicants to send their background
check fingerprint cards through the NMLS system; currently those
have to be provided to the department.
CHAIR PASKVAN asked the intent is to comply with federal law.
MS. HOVANIC replied yes - by July 30, 2009.
CHAIR PASKVAN asked if the administration supports this bill.
MS. HOVANIC replied yes.
CHAIR PASKVAN asked her to explain the fee of $50,000 for
joining the system.
1:14:22 PM
MS. HOVANIC replied that is what is estimated to be needed to
upgrade the state's systems and integrate them to interface with
the NMLS. It also has a training component.
SENATOR BUNDE said it has been the state's practice that the
cost to the licensee should break even with fees, and asked if
that would be the case with this one.
MS. HOVANIC replied yes.
SENATOR BUNDE asked if all licensees will be licensed in a
timely fashion.
MS. HOVANIC replied yes; taking it up in a larger bill would
make it harder for licensees to be licensed in time.
1:15:47 PM
SENATOR THOMAS asked if this was a reaction to the subprime
loans that were made when people were licensed for insurance,
but operated as mortgage lenders, as well.
MS. HOVANIC replied yes; and this is about making the collection
of licensees more transparent.
SENATOR THOMAS asked if the state becomes qualified or
disqualified from some things by doing it.
MS. HOVANIC replied if the state doesn't comply, federal law
requires HUD to take over the mortgage licensing in Alaska.
1:17:01 PM
JOHN MARTIN, President, Alaska Association of Mortgage Lenders,
supported SB 187. He said they worked on getting their licensing
statutes passed a couple of years ago; since that time Congress
has passed the Safe and Fair Enforcement Act (SAFE), which
pertains to mortgage licensing. It sets the minimum standards
all states must comply with by July 31, 2009. If the standards
are not met in time, an extension can be granted to those states
based on their good faith efforts to comply.
SB 149 was introduced to comply, but more changes are needed.
There is not enough time in this legislative session to iron it
all out. So they will work with the department and the Mortgage
Bankers Association to get final language. The state can apply
for an extension from HUD in regards to the SAFE Act based upon
pending legislation, the fact that present statutes already
substantially comply with the SAFE Act and by joining the
National Mortgage Licensing System and Registry (NMLSR). SB 187
will grant the state the necessary authority to join the NMLSR
which will also help Alaska get closer to compliance.
1:19:47 PM
CHAIR PASKVAN closed public testimony.
1:19:52 PM
SENATOR THOMAS moved to report SB 187 from committee with
individual recommendations and attached fiscal note(s). There
were no objections and it was so ordered.
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