As a result of a new Alaska law, HB 104, the following are exempted from mortgage loan originator requirements in the state:

• Employees of federal, state, or local government agencies.

• Retroactive to July 1, 2008: a seller (including a natural person, estate, trust, corporation or another entity) that offers or negotiates the terms of a residential mortgage loan for the sale of residential property owned by the seller if (A) the loan is secured by a dwelling on the property; (B) the seller self-finances the loan; (C) during any 12-month period, the seller finances five or fewer sales under this exemption; (D) in the ordinary course of a business of the seller, the seller has not constructed the dwelling that secures the loan on the property or acted as a contractor for the construction of the dwelling that secures the loan on the property; (E) the loan has an interest rate that is fixed for the full term of the loan; (F) the loan does not have a payment schedule that results in negative amortization or does not allow or impose a prepayment penalty; and (G) the seller determines that the purchaser or potential purchaser has a reasonable ability to repay the loan. The provision also imposes confidentiality obligations on the seller relating to the purchaser’s or potential purchaser’s credit, salary, tax and other financial information obtained for the purposes of determining the ability to repay.

Effective January 1, 2020, the following exemptions will also apply:

• Bona fide nonprofit organizations” will be exempt from mortgage lender and mortgage broker licensure. To qualify, the department must determine that the organization (1) has and maintains 501(c)(3) tax-exempt status; (2) promotes affordable housing or provides home ownership education or similar services; (3) conducts its activities in a manner that serves a public or charitable (not commercial) purpose by offering mortgages that are not readily available from other lenders; (4) receives funding, receives revenue, and charges fees in a manner that does not provide an incentive for the organization or its employees to act other than in the best interests of its clients; (5) compensates its employees in a manner that does not provide an incentive to its employees to act other than in the best interests of its clients; (6) provides or identifies for a borrower residential mortgage loans with terms favorable to the borrower and comparable to mortgage loans and housing assistance provided under government housing assistance programs. Terms that are favorable to the borrower are terms that are consistent with mortgage loan origination for a public or charitable purpose, rather than in a commercial context, and provide for interest rates that are less than the current market rate; and (7) meets other standards that the department determines are appropriate. The department shall establish further procedures relating to qualification determinations, the duration of such determination, applicable fees, examination requirements, procedures for denials and for taking of other administrative actions against a bona fide nonprofit organization by regulation. The department may also establish further rules regarding the information that is required to support qualification determinations.

• Employees of bona fide nonprofit organizations will likewise be exempt from mortgage loan originator licensure when acting as a mortgage loan originator only with respect to duties to the bona fide nonprofit organization and the residential mortgage loans have terms that are favorable to the borrower by being consistent with mortgage loan origination for a public or charitable purpose rather than in a commercial context.