Alaska Mortgage Lending Regulation Act (AMLRA), AS 06.60 ---

Proposed Mortgage Regulations:

Notice Of Proposed Changes In The Regulations (as posted on State of Alaska, Online Public Notice Site)

Notice regarding Effective Date of Mortgage Licensing Statute:

• The Alaska Mortgage Lending Regulation Act (AMLRA), AS 06.60, requires mortgage lenders, mortgage brokers, and originators operating in Alaska to become licensed.
• If you are already operating as a mortgage lender, mortgage broker, or originator, you do not have to be licensed under the AMLRA until March 1, 2009:
• This means that if you are operating as a mortgage lender, mortgage broker, or originator in Alaska on June 30, 2008, you are not required to be licensed until March 1, 2009.
• If you enter the mortgage business as a lender, broker, or originator in Alaska after June 30, 2008, you are subject to the AMLRA that takes effect on July 1, 2008:
• This means that if you are not operating as a mortgage lender, mortgage broker, or originator in Alaska on June 30, 2008, you are required to be licensed starting July 1, 2008.
• The Division of Corporations, Business, and Occupational Licensing will consider a person to be operating in Alaska on June 30, 2008, if the person is engaging in business as a mortgage lender, mortgage broker, or originator pursuant to a current Alaska business license issued for that purpose.
• For example, if an Alaska business license has been issued to a mortgage company prior to June 30, 2008, that would indicate the company was doing business prior to July 1, 2008.
• Alaska business licensing requirements can be found at: Business licensing.

General Information Regarding the Alaska Mortgage Lending Regulation Act:

On July 1, 2008, the State of Alaska, Division of Corporrations, Business and Professional Licensing will begin licensing and regulating mortgage brokers, mortgage lender, and mortgage originators.  The new law as codified in Alaska Statute under title 06.60 will not allow any grandfathering of entities or individuals.  A copy of the new law is available here. 

Some highlights of the new law are:

• All mortgage brokers or lenders that make or provide mortgage loans to Alaska residents shall be required to obtain a license.  This includes all companies that operate on the internet or provide remote lending from another state by mail, or telephone.
• All mortgage originators will be required to pass a background investigation and a competency test prior to providing service to Alaska residents.
• All mortgage originators will be required to complete 24 hours of continuing education every biennial licensing period.
• All mortgage originators will be required to pay into a surety fund. The fund will be used to compensate consumers for losses they may incur due to unethical or illegal behavior on the part of an originator.
• The division will conduct examinations of licensed entities on a three-year cycle, or sooner if a complaint is made by a consumer.
• Under the AMLRA, mortgage lenders and mortgage brokers must obtain a "mortgage license" and individual originators must obtain an "originator license."
• An individual who is the principal owner or legally authorized manager of the applicant may apply for a duel license as a mortgage licensee and the single designated originator for the mortgage licensee.

Until the new law becomes effective, the following are intended to answer some basic questions regarding Alaska law and regulation:

• The legal rate of interest for the state of Alaska is found in AS 45.55.010 of the Alaska Statutes. This section of law also discusses allowable prepayment penalties on one to four family dwellings. All statutes and administrative code may be accessed at: Alaska laws and regulations.
• Many foreign mortgage lenders and brokers choose to register as a foreign corporation with our corporations section. You may obtain the necessary forms at: Foreign corporation information.
• A business license may be required for these types of activities and verification of business licensing requirements may be made at: Business licensing.

Over the coming months, the Division of Corporations, Business and Professional Licensing will be updating this page with news and information to keep the public and industry informed of the progress in the implementation of this new law.  If you have any questions, please contact the division at license@alaska.gov, or by telephone at (907) 465-2550.