Mortgage Lenders in Alaska need to obtain a surety bond before they can receive a license.
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 lenders, originators and brokers.
A mortgage lender is any company loans funds for residential mortgages of Alaska property and is named as the payee on the promissory note and as a beneficiary on the deed of trust.
The Alaska Administrative Code, Title 3, Chapter 14 and the Alaska Statutes Chapter 06.60 Alaska Secure and Fair Enforcement for Mortgage Licensing Act of 2010 and defines the licensing of mortgage lenders.
License requirements are as follows:
1. Complete the 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 checklist.
3. Provide copies of the following if applicable: if any questions answered “Yes” on the disclosure statement, provide supporting documentation; if using a DBA name or other trade name, attach the Business Name Registration obtained through the Alaska Division of Corporations, Business and Professional Licensing; if non-profit submit a copy of the IRS 501(c)(3) designation letter or statement from a State tax entity; if a Trust, submit a copy of a Certificate of Trust and the governing instrument with all amendments.
4. Provide a copy of a State issued Certificate of Authority and/or Good Standing Certificate dated not more than 60 days prior to submitting the application and complete the Alaska Affidavit form.
Provide a State certified copy of applicants formation documentation including original formation documents, amendments and any name changes.
5. Provide a State certified copy of applicants formation documentation including original formation documents, amendments and any name changes.
6. Provide an unaudited financial statement prepared within 90 days of the company fiscal year end. Financial statements consist of: a balance sheet, income statement, and statement of cash flows as well as any other relevant notes. If a start-up company, an initial statement of condition is required. Provide audited financial statements if available.
7. Provide a Business Plan as to how business will be conducted for marketing, products carried, target markets, fee schedule, operation management, dba or trade names used, specific consumer business for Alaska.
8. Provide a Management Chart that includes directors and officers with percentage of ownership including indirect owners with less than 10% interest, managers, subsidiaries and affiliates and the persons responsible for compliance and internal audits.
9. Provide copies of legal name or legal status (examples are driver’s license, marriage certificate, passport, divorce decree).
10. Complete an Attestation form MU2 for each individual listed with control of the company.
11. Obtain a $75,000 surety bond. A separate $75,000 surety bond is required for each DBA or trade name used. Mail all original surety bonds to the Division.
12. Provide a copy of a current business licensed issued by the State of Alaska.
13. Pay applicable fees for individual FBI Criminal Background Checks and credit reports for any direct or indirect owners, executive officer, qualifying individual.
The premium that you pay for an Alaska Mortgage Lender Surety Bond will be dependent on credit and business and personal financial statements.
Alaska mortgage lender and mortgage broker licenses must be renewed annually by December 31. More Information here.