After years of debate, the State of Alaska has joined the ranks of most other states with legislation to regulate the Mortgage Broker and Mortgage Lender Industry. The Alaskan act is entitled the Alaska Mortgage Lending Regulation Act. This act has structured guidelines for licensing and registration of all lenders and brokers within the state. This underlying basis of this act will cause accountability of the brokers & lenders for their actions.
As a result, there will be many new licensing guidelines and requirements that will regulate the Mortgage Industry in Alaska. All new applicants applying for the license after July, 1 2008 must adhere to new the new requirements, while any Mortgage Brokers or Mortgage Lenders that are currently operating in the state must be compliant with the new licensing laws no later than March 1, 2009. After March 2009, one may not operate in the state as a Mortgage Broker, Lender, or Originator unless licensed.
Some of the new requirements that will be put in place are as followed:
- Full application
- Competency testing
- Continuing education requirements
- Annual reporting to centralized agency
- Record keeping as per guidelines forthcoming
- $25,000 Mortgage Broker License Surety Bond
The new laws will affect all Mortgage Broker or Mortgage Lender & in all capacities. These new regulations will also regulate brokers or lenders that are running their business via the internet or by providing services from a remote location either within the state or outside of the state, via some sort of mail service, or by phone.
Initially, the applicants will be required to submit to a full Background Investigation and the application must pass this phase. This investigation will be done through the submission of fingerprints to the Department of Public Safety in Alaska. Next, the applicants will need to take a Competency Test. This test must be passed with the desired score, prior to being allowed to service any residents of Alaska. The test is free the first time for applicants. If the test is not passed the first time, the retesting will be made available for a fee.
The Surety Bond that will be required for Alaska will need to be in the amount of $25,000. The bond must be in the favor of the state of Alaska. The bond insures that Mortgage broker and/or Lender will operate their business ethically and under the new guidelines set forth under the Alaska Mortgage Lending Regulation Act. These mortgage bonds must be established as a bond of a continuous nature with effective for the duration of a valid license.
For more details about the new requirements, it is recommended that you visit the Alaska State website or the Alaska Department of Commerce, Community, and Economic Development Division of Banking and Securities.
You can find all state requirements in our mortgage broker guide on “How To Become A Mortgage Broker“.