18 Jan Alaska Regulatory Update
Alaska House Bill 12 amended provisions regarding licensing requirements for registering a depository institution (see our Memorandum of December 14, 2016 for a discussion of this legislation). The Alaska Department of Commerce, Community, and Economic Development (“Department”) has revised its regulations in accordance with House Bill 12, effective January 1, 2017.
Alaska Mortgage Lending Regulations
A “Registered Depository Institution” is a depository institution that has registered with the Department to sponsor a licensed mortgage loan originator. The revised rule sets forth the procedures and requirements for Registered Depository Institutions including, but not limited to:
- Licensing fees;
- Surety bond requirements;
- Reporting requirements;
- Sponsorship requirements;
- Application process;
- Pre-licensing and continuing education;
- Reporting requirements;
- Branch office registration; and
- Record-keeping requirements.
When a person applies for a mortgage license (mortgage broker/lender or Registered Depository Institution), the person must pay to the Department through the Nationwide Multistate Licensing System and Registry (“NMLS”):
- An application fee of $500 (previously $250) in partial payment of investigative expenses incurred by the Department; and
- An annual license fee of $1,000 (previously $500) for the period that expires on December 31 after the date the license is issued.
When a person applies for an individual mortgage loan originator license, the person must pay to the Department through the NMLS:
- An application fee of $250 in partial payment of investigative expenses incurred by the Department;
- An annual license fee of $300 (previously $250) for the period that expires on December 31 after the date the license is issued; and
- A surety fund fee of $50 (previously $150).
An application is considered abandoned if the Department does not receive any response from the applicant, licensee or Registered Depository Institution for 60 days (previously 90 days) after the Department assigns a notice of deficiency to the record of the applicant, licensee or Registered Depository Institution in the NMLS.
The late renewal fees are $500 for a mortgage licensee and $250 for a mortgage loan originator.
A mortgage licensee and a Registered Depository Institution must ensure that if a mortgage loan originator’s home or other location is used to conduct the majority of activities of a mortgage loan originator that the mortgage loan originator’s home or other location is registered as a branch office for the mortgage licensee or the Registered Depository Institution.
A mortgage licensee or a Registered Depository Institution that seeks to relocate the office listed as the main address with the NMLS or an office listed as a branch address with the NMLS must submit a written notice directly to the Department at least 30 days (previously 14 days) before relocating the business.
When a mortgage licensee applies for Department approval of a change in control of the mortgage licensee, the mortgage licensee must pay to the Department a fee of $300 (previously $150) per control person plus any investigative expenses incurred by the Department. A mortgage licensee must maintain at least two control persons at all times, unless the Department temporarily waives the requirement of this subsection because circumstances beyond the mortgage licensee’s control make only one control person available.
If a mortgage licensee or a Registered Depository Institution seeks to change its name, the mortgage licensee or the Registered Depository Institution must submit an application to amend its filing with the NMLS and submit a fee of $100 (previously $50) to the Department through the NMLS.