Legislature(2009 - 2010)

04/09/2009 01:09 PM Senate L&C

Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ 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.                                                                                       

Document Name Date/Time Subjects