Alaska and Massachusetts Regulatory Update

The Alaska Department of Commerce, Division of Banking and Securities (“Department”) has amended their regulations dealing with mortgage lending and nonprofit exemptions, effective February 6, 2020.  The Massachusetts Department of Banking has amended the rules related to licensing of mortgage loan originators, effective January 10, 2020.

 

3 ALASKA ADMINISTRATIVE CODE CHAPTER 14

 

A bona fide nonprofit organization may submit an application for exemption registration to the department through the NMLS registry to determine if the organization qualifies for an exemption.  The nonrefundable fee for an annual bona fide nonprofit exemption registration is $400.  A bona fide nonprofit organization must apply annually for the exemption between November 1 and December 1 each year to maintain the exemption for the following year.  The bona fide nonprofit organization must comply with the record keeping and notice requirements for mortgage licensees. 

 

With respect to applicants for a mortgage license, the requirement to designate a qualifying individual has been repealed. 

 

An applicant for mortgage loan originator license must submit to the registry that the applicant has completed the prelicensing education as required.  However, the prelicensing education expires, and the applicant must complete an additional 20 hours of approved prelicensing education in order to be eligible for a mortgage loan originator license, if the applicant:

  • Fails to acquire a valid state license or federal registration as a mortgage loan originator within 3 years from the date of completion of any approved prelicensing education course; or
  • Fails to acquire a valid state license or federal registration as a mortgage loan originator within 3 years from the last date of licensure or registration as a mortgage loan originator.

 

 

 

MASSACHUSETTS 209 CMR 41.00        

 

“Bona fide nonprofit affordable homeownership organization” is defined as a Massachusetts nonprofit whose primary purpose is helping qualified low-income individuals build, repair and purchase affordable housing, and meets the definition in federal law. 

 

“Instrumentality created by the United States or any State” means a federal, state, municipal government, quasi-governmental entity or nonprofit agency or corporation that has tax exempt status granted under federal law, that exclusively makes or issues commitments for mortgage loans on residential property to be financed with public funds, or negotiates, places, assists in the placement of, finds, or offers to negotiate, place or assist in the placement of or find mortgage loans on residential property to be financed with public funds only under a contract with a federal, state, or municipal government, any instrumentality thereof or any quasi-governmental entity as defined by the Commissioner of Banking (“Commissioner”).  The making of a mortgage loan will include being named as the lender or mortgagee on the note, mortgage, or other loan documents.

 

Added to the definition of those persons not required to obtain a mortgage loan originator license are the following:

  • Any person who otherwise meets the definition of a mortgage loan originator but who is employed by an organization determined by the Commissioner to be a nonprofit affordable housing organization;
  • Any person who otherwise meets the definition of a mortgage loan originator but who is employed by an instrumentality created by the United States or any state.

 

 

Sign up for news + updates

Expert insights and regulatory updates on RegTech, compliance management, and fair lending.

Diane Jenkins

Director, National Mortgage Compliance Practice Group

Recommended Resources