"An Act relating to mortgage lenders, mortgage brokers, state agents who collect program administration fees, and other persons who engage in activities relating to mortgage lending; relating to mortgage loan activities; relating to fees for recorded mortgage loan instruments; and providing for an effective date. "
"This proposal is an initial attempt to regulate the mortgage lending industry in Alaska and is supported by the Alaska Division of Banking and Securities and several groups in the industry."
- Sen. Wagoner
Alaska is the last and only state that does not license and regulate residential mortgage lending. Because of this, the Alaska Division of Banking and Securities has no authority to investigate the 20 plus complaints and over 50 phone calls it receives weekly about questionable lending practices, and can do nothing to help Alaska consumers that feel they are being taken advantage of. Increased access to internet lending in recent years has contributed even further to the growing number of complaints and has caused the U.S. Congress to seek ways to strengthen consumer protection in an area that represents, to some, the largest single investment they will make in their lifetime.
Recognizing this problem, the mortgage lending industry in Alaska has been meeting for several years to develop legislation that balances protection of Alaska's consumers while insuring sufficient access to residential mortgage loans. And this past year the Alaska Division of Banking and Securities worked closely with several leading mortgage lending groups to develop the language in SB 272 that will address this problem.
SB 272 has been introduced as a companion bill to HB 424 and is a starting point to address this problem and grant the Alaskan Division of Banking and Securities enough licensing and regulatory authority to begin dealing with the growing number of complaints the receive from Alaska home buyers.
This effort to establish accountability in the mortgage lending industry in Alaska is vital and past due. This proposal is an initial attempt to regulate the mortgage lending industry in Alaska and is supported by the Alaska Division of Banking and Securities and several groups in the industry.