HB12 reduces unnecessary licensing duplication for mortgage loan originators
WASHINGTON, D.C. – (RealEstateRama) — Legislation by Rep. Shelley Hughes to streamline the mortgage loan originator (MLO) laws to get rid of unnecessary duplication for contract MLOs cleared its final hurdle in the House and now will head to the governor. The Alaska House concurred in Senate changes to House Bill 12.
HB12 creates a more level playing field in the mortgage lending industry and a more friendly statutory environment for business in Alaska by removing the cross licensing requirement for those involved in mortgage transactions. Right now, a contract MLO has to have two licenses, an MLO license and a mortgage lender/broker license, instead of a single license like an employee MLO.
“Today’s law is cumbersome for business, and thanks to passage of the federal SAFE Act in 2010, the improvements in HB 12 will have no impact on consumer protection laws in Alaska,” said Hughes, R-Palmer. “Economic times are tough. It’s our responsibility to improve laws to accommodate a healthy business climate. Less red tape is a good thing.”
HB 12 carries provisions to update state mortgage lending laws to account for new and modern business models with contract MLOs. “Its improvements to the oversight of independent agents through bank audits consolidates the work of the State’s Division of Banking and Securities, reducing red tape and saving costs,” said Hughes. “This bill shrinks the burden on both business and the State. That’s a very good thing.”
HB12 originally passed the House last April. The Alaska Senate passed the bill Feb. 24.