New Surety Bond Rule for Alaska Depository Institutions

depository institutions

With the passage of House Bill 12, some depository institutions in Alaska will need to adhere to new rules regarding mortgage loan originators contracted with the institutions. House Bill 12 takes effect on January 1, 2017.

HB 12 allows depository institutions that are exempt from Alaska mortgage licensee requirements under Section 06.60.015 of the Alaska Statutes to choose to sponsor a mortgage loan originator. Depository institutions are financial institutions that can accept monetary deposits, like credit unions, savings and commercial banks, and savings and loan institutions. Mortgage loan originators take residential mortgage loan applications or offers or negotiates the terms of a residential mortgage loan. Originators’ licenses must be sponsored by a mortgage licensee (a licensed mortgage broker or lender), meaning originators must work under a licensee. HB 12 will allow those exempt depository institutions to sponsor an originator.

If a depository institution in Alaska has an exclusive contract with a mortgage loan originator, the institution must register with the Department of Commerce, Community, and Economic Development. It must also adhere to the surety bond requirements for originators in the state. Under current law, originators must post a $75,000 surety bond when they become licensed. Depository institutions sponsoring an originator will need to post that bond. 

Contact the Banking and Securities Division of the Department if you have questions about becoming a licensed mortgage loan originator in Alaska. The experts at SuretyBonds.com can help you purchase your Alaska surety bond.

About the Author

Melanie Baravik
Melanie is a senior at the University of Missouri - Columbia studying English with an emphasis in creative writing. She is a member of the marketing department and outreach team for SuretyBonds.com, a leading provider of online bonding for clients nationwide.