(a) The following persons are exempt from the mortgage lender or mortgage broker licensing requirements of this chapter:
Terms Used In Alaska Statutes 06.60.015
action: includes any matter or proceeding in a court, civil or criminal. See Alaska Statutes 01.10.060
Amortization: Paying off a loan by regular installments.
bona fide nonprofit organization: means an organization that the department has determined qualifies as a bona fide nonprofit organization under Alaska Stat. See Alaska Statutes 06.60.990
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
department: means the Department of Commerce, Community, and Economic Development. See Alaska Statutes 06.60.990
dwelling: means a residential structure or mobile home that contains one to four family housing units, or the individual units of condominiums or cooperatives. See Alaska Statutes 06.60.990
federal banking agency: means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the director of the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Deposit Insurance Corporation. See Alaska Statutes 06.60.990
Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
mortgage broker: means a person who, for compensation or gain, or in the expectation of compensation or gain, directly or indirectly, by telephone, by electronic means, by mail, through the Internet, in person, or by the person itself or a mortgage loan originator,(A) arranges with a variety of lending sources, including private lenders, institutional investors, or wholesale lenders, to provide financing for mortgage loans. See Alaska Statutes 06.60.990
Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
person: includes a corporation, company, partnership, firm, association, organization, business trust, or society, as well as a natural person. See Alaska Statutes 01.10.060
residential mortgage loan: means a loan that is primarily for personal, family, or household use and that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling or residential real estate located in the state. See Alaska Statutes 06.60.990
state: means the State of Alaska unless applied to the different parts of the United States and in the latter case it includes the District of Columbia and the territories. See Alaska Statutes 01.10.060
(1) a depository institution;(2) a subsidiary that is
(A) owned and controlled by a depository institution; and(B) regulated by a federal banking agency;(3) an institution regulated by the Farm Credit Administration; (4) a federal, state, or local government agency, including an agency that arranges or provides financing for mortgage loans; or(5) a bona fide nonprofit organization.(b) The following are exempt from the mortgage loan originator licensing requirements of this chapter:
(1) an individual who is a registered mortgage loan originator, when acting for an entity described in (a)(1), (2), or (3) of this section;(2) an individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual; in this paragraph, “immediate family member” means a spouse, child, stepchild, sibling, stepsibling, parent, stepparent, grandparent, or grandchild;(3) an individual seller who offers or negotiates terms of a residential mortgage loan secured by a dwelling that serves as the individual’s residence;(4) a seller, including a natural person, estate, trust, corporation, or another entity, that offers or negotiates the terms of a residential mortgage loan for the sale of residential property owned by the seller, if
(A) the loan is secured by a dwelling on the property;(B) the seller self-finances the loan;(C) during any 12-month period, the seller finances five or fewer sales under this paragraph;(D) in the ordinary course of a business of the seller, the seller has not
(i) constructed the dwelling that secures the loan on the property; or(ii) acted as a contractor for the construction of the dwelling that secures the loan on the property;(E) the loan has an interest rate that is fixed for the full term of the loan;(F) the loan does not
(i) have a payment schedule that results in negative amortization; or(ii) allow or impose a prepayment penalty; and(G) the seller determines that the purchaser or potential purchaser has a reasonable ability to repay the loan; the seller shall keep confidential and may not disclose to another person at any time credit scores, salary information, tax records, and other financial information of the purchaser or potential purchaser obtained by the seller under this subparagraph for the purpose of determining whether the purchaser or potential purchaser has a reasonable ability to repay the loan; however, the seller may disclose the financial information when, and only to the extent that,
(i) the purchaser or potential purchaser authorizes the disclosure in writing; (ii) the seller makes the disclosure to obtain professional advice relating to a dispute with the purchaser or potential purchaser; (iii) federal or state law requires the disclosure; or (iv) a court orders the disclosure;(5) an individual who is a licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client, unless the attorney is compensated by a lender, a mortgage broker, or another mortgage loan originator or by an agent of a lender, a mortgage broker, or another mortgage loan originator;(6) an employee of a federal, state, or local government agency that is exempt under (a)(4) of this section from the mortgage lender or mortgage broker licensing requirements of this chapter;(7) an employee of a bona fide nonprofit organization if the employee acts as a mortgage loan originator only with respect to
(A) the employee’s duties to the bona fide nonprofit organization; and(B) residential mortgage loans that have terms that are favorable to the borrower by being consistent with mortgage loan origination for a public or charitable purpose rather than in a commercial context.(c) For a nonprofit organization to qualify as a bona fide nonprofit organization under (a)(5) of this section, the department shall determine that the nonprofit organization
(1) has and maintains the status of a tax-exempt organization under 26 U.S.C. § 501 (c)(3) (Internal Revenue Code);(2) promotes affordable housing or provides home ownership education or similar services;(3) conducts its activities in a manner that serves a public or charitable purpose, rather than a commercial purpose, by offering mortgages that are not readily available from other lenders;(4) receives funding, receives revenue, and charges fees in a manner that does not provide an incentive for the organization or its employees to act other than in the best interests of its clients;(5) compensates its employees in a manner that does not provide an incentive to its employees to act other than in the best interests of its clients;(6) provides or identifies for a borrower residential mortgage loans with terms favorable to the borrower and comparable to mortgage loans and housing assistance provided under government housing assistance programs; for residential mortgage loans to have terms that are favorable to the borrower, the terms must be consistent with mortgage loan origination for a public or charitable purpose, rather than in a commercial context, and provide for interest rates that are less than the current market rate; and(7) meets other standards that the department determines are appropriate.(d) The department may establish by regulation the information that an organization must provide to qualify as a bona fide nonprofit organization under (c) of this section.(e) The department shall establish by regulation
(1) the procedure for determining that an organization meets the criteria identified under (c) of this section;(2) the period for which the determination made under (c) of this section remains in effect and the fee to be paid by the organization;(3) how often and under what circumstances the department will examine the books and activities of the organization to determine that the organization continues to meet the criteria identified under (c) of this section; and(4) the procedure for denying an organization the status of a bona fide nonprofit organization, for suspending or revoking an organization’s status as a bona fide nonprofit organization if the organization does not continue to meet the criteria identified under (c) of this section, and for taking disciplinary action against an organization arising out of a violation of (c) – (e) of this section; the provisions of Alaska Stat. Chapter 44.62 (Administrative Procedure Act) apply to an action of the department under this paragraph.
