Bill Text: HI SB2612 | 2010 | Regular Session | Introduced
Bill Title: Mortgage Loan Originators; Secure and Fair Enforcement for Mortgage Licensing Act
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-02-17 - (S) The committee on CPN deferred the measure. [SB2612 Detail]
Download: Hawaii-2010-SB2612-Introduced.html
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THE SENATE |
S.B. NO. |
2612 |
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TWENTY-FIFTH LEGISLATURE, 2010 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to mortgage loan originators.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 454F-3, Hawaii Revised Statutes, is amended to read as follows:
"[[]§454F-3[]] Requirement
of licensure. Effective August 1, 2010, or such later date approved
by the United States Department of Housing and Urban Development pursuant to
the authority granted under Public Law 110-289, Section 1508(e), an individual[,
unless specifically exempted from this chapter,] shall not engage in the
business of a mortgage loan originator with respect to any dwelling located in
this State without first obtaining and maintaining annually, a license under
this chapter. Each licensed mortgage loan originator shall register with and
maintain a valid unique identifier issued by the Nationwide Mortgage Licensing System,
and shall submit to the Nationwide Mortgage Licensing System any reports that
shall be in a form and contain information as the Nationwide Mortgage Licensing
System may require."
SECTION 2. Section 454F-7, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
"(d) An individual shall have passed a
qualified written test if the individual achieves a test score of seventy-five
per cent of the correct answers to questions or better. An individual may
retake a test three consecutive times with each consecutive taking occurring at
least thirty days after the preceding test. After failing three consecutive
tests, an individual shall wait at least six months before taking the test
again. A licensed mortgage loan originator who fails to maintain a valid
license for a period of five years or longer [not taking into account any
time during which the individual is a registered mortgage loan originator,]
shall retake the test."
SECTION 3. Section 454F-1, Hawaii Revised Statutes, is amended by deleting the definitions of "clerical and support duties", "immediate family member", "insured depository institution", "loan processor or underwriter", and "registered mortgage loan originator".
[""Clerical or support
duties" include the following activities subsequent to the receipt of an
application:
(1) The receipt, collection, distribution,
and analysis of information for the processing or underwriting of a residential
mortgage loan; and
(2) Communication with a borrower to obtain
the information necessary for the processing or underwriting of a loan, to the
extent that the communication does not include offering or negotiating loan
rates or terms or counseling borrowers about residential mortgage loan rates or
terms.
"Immediate family member" means a
spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild,
stepsibling, and equivalent adoptive relationships.
"Insured depository institution"
means the same as in 12 United States Code Section 1813(c)(2); provided that it
also includes any credit union whose deposits are insured by the National
Credit Union Association.
"Loan processor or underwriter"
means an individual who performs clerical or support duties as an employee at
the direction of and subject to the supervision and instruction of a mortgage
loan originator or a person who is exempt from licensing as a mortgage loan
originator under this chapter.
"Registered mortgage loan
originator" means any individual who:
(1) Meets the definition of mortgage loan
originator and is an employee of:
(A) An insured depository
institution;
(B) A subsidiary that is:
(i) Owned and controlled by an
insured depository institution; and
(ii) Regulated by a federal banking
agency; or
(C) An institution regulated by the
Farm Credit Administration; and
(2) Is registered with, and maintains a
unique identifier through, the Nationwide Mortgage Licensing System and
Registry."]
SECTION 4. Section 454F-2, Hawaii Revised Statutes, is repealed.
["[§454F-2] Exemptions.
This chapter shall not apply to the following:
(1) A registered mortgage loan originator,
when acting for an insured depository institution, a subsidiary of an insured
depository institution regulated by a federal banking agency, or an institution
regulated by the Farm Credit Administration;
(2) Any individual who offers or negotiates
terms of a residential mortgage loan with, or on behalf of, an immediate family
member of the individual;
(3) Any individual who offers or negotiates
terms of a residential mortgage loan secured by a dwelling that served as the
individual's residence;
(4) A licensed attorney who negotiates the
terms of a residential mortgage loan on behalf of a client as an ancillary
matter to the attorney's representation of the client unless the attorney is
compensated by a lender, a mortgage broker, or other mortgage loan originator
or by an agent of a lender, mortgage broker, or other mortgage loan originator;
(5) An individual engaging solely in loan
processor or underwriter activities; provided that an individual, including an
independent contractor, who performs the services of a loan processor or
underwriter shall not represent to the public, through advertising or other
means of communicating or providing information, including the use of business
cards, stationery, brochures, signs, rate lists, or other promotional items,
that the individual can or will perform any of the activities of a mortgage
loan originator, and any loan processor or underwriter, including an
independent contractor, who advertises that the individual can or will perform
any of the activities of a mortgage loan originator or engages in the
activities of a mortgage loan originator shall not be exempt under this chapter
and shall obtain and maintain a license under this chapter and a valid unique
identifier issued by the Nationwide Mortgage Licensing System;
(6) A person or entity that only performs
real estate brokerage activities and is licensed or registered by the State
unless the person or entity is compensated by a lender, a mortgage broker, or
other mortgage loan originator or by an agent of the lender, mortgage broker,
or other mortgage loan originator; or
(7) A person or entity solely involved in
extensions of credit relating to timeshare plans, as the term is defined in
Section 101(53D) of Title 11, United States Code."]
SECTION 5. Statutory material to be repealed is bracketed and stricken.
SECTION 6. This Act shall take effect on July 1, 2010.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Mortgage Loan Originators; Secure and Fair Enforcement for Mortgage Licensing Act
Description:
Removes exemptions from licensure under the SAFE Mortgage Licensing Act. Makes conforming amendments.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
