Alaska Mortgage Broker Surety Bonds- A License Requirement

Mortgage Brokers and Mortgage Lenders in Alaska are required to obtain a surety bond before a license can be issued. The Alaska Department of Commerce, Community and Economic Development, Division of Banking and Securities, known as the Division, is tasked with the oversight of licensure and regulations of mortgage originators, mortgage brokers and mortgage lenders. A mortgage broker is any person (other than an exempt person) that receives compensation or gain through internet, email, in person, etc. and who offers or assists, and arranges various lending sources options. This includes originators who are employees or contract employees. The Alaska Statutes Chapter 06.60 Alaska Secure and Fair Enforcement for Mortgage Licensing Act of 2010 and the Alaska Administrative Code, Title 3, Chapter 14 defines the licensing of mortgage brokers.

Surety Bond Requirements:

Obtain a $75,000 surety bond for mortgage broker. For each dba name or trade name used, a separate $75,000 surety bond will be required. The original surety bonds will need to be mailed directly to the Division.

License Requirements:

1. Complete the mortgage broker application (MU1) through the NMLS system and pay the applicable filing fee, credit report fee for control persons, FBI criminal background check for MU2 fee, Additional Investigative cost fees.
2. Review the broker checklist.
3. Provide a copy of the Business Name Registration obtained through the Alaska Division of Corporations, Business and Professional Licensing if using a trade name or dba.
4. If the business will be non-profit submit a copy of the IRS 501(c)(3) designation letter or statement from a State tax entity
5. If the business will be a Trust, submit a copy of a Certificate of Trust and the governing instrument with all amendments.
6. Provide a state certified copy of the applicants formation documentation including original formation documents, any name changes or amendments.
7. Provide a copy of a state issued Good Standing Certificate or Authority that is dated within 60 days or less of the application and complete the Alaska Affidavit form.
8. Provide unaudited financial statements prepared within 90 days of the company fiscal year end. Financial statements consist of: a statement of cash flows, income statement, and balance sheet as well as any other relevant notes. If the business is a start-up company, an initial statement of condition is required. Provide audited financial statements if available.
9. Provide supporting documentation and explantions for each disclosure question that was answered "yes.
10. Provide a Business Plan as to how business will be conducted for target markets, marketing, products carried, fee schedule, operation management, dba or trade names used, specific consumer business for Alaska.
11. Provide a Management Chart that includes officers and directors, percentage of ownership including indirect owners with less than 10% interest, for subsidiaries and affiliates, managers, and the persons responsible for compliance and internal audits.
12. Provide a copy of each owners legal name or legal status (examples are passport, marriage certificate, divorce decree or drivers license).
13. Complete the Attestation form MU2 for each individual listed with control of the company.
14. Pay the applicable fees for individual FBI Criminal Background Checks and credit reports for any direct or indirect owners, executive officer, qualifying individual.
15. Provide a copy of a current business licensed issued by the State of Alaska.

How Much Will an Alaska Mortgage Broker Bond Cost?

The premium amount that you pay for an Alaska Mortgage Broker Surety Bond is dependent on credit and personal and business financial statements. Premiums start at .75% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote that fits your specific situation.Contact our Surety Bond Specialists for a free quote that fits your specific situation.

Did You Know?

Alaska mortgage broker and mortgage lender licenses must be renewed annually by December 31. More Information here.

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