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Hawai'i Association of Mortgage Brokers (HAMB)
P.O. Box 1074
Honolulu, HI 96808
info@hamb.org

 

 

 

 

HAMB Legislation & Regulations

HAMB is sponsoring a bill amending HRS 454F, formerly known as Act 32, which was passed by the 2009 Hawaii state legislature.
The key points we will address with this amendment are:

  • Adding Mortgage Loan Originator Companies (MLOCs) throughout HRS 454F
  • Including MLOCs in HRS 237-24.8 regarding the Franchise Tax: “"Financial institution" means banks, building and loan associations, development companies, financial corporations, financial services loan companies, small business investment companies, financial holding companies, mortgage loan originator companies, and trust companies all as defined in chapter 241.” This way we will continue to file the Franchise Tax on net income instead of GET on gross proceeds.
  • Replacing the bonding requirement with a more consumer-friendly Mortgage Recovery Fund with a threshold balance of $2,000,000, with MLO and MLOC contributions reduced to zero in any year subsequent to a year in which the fund’s balance is equal to or greater than the $2,000,000 threshold.
  • Fees: For MLOs; $200 application fee, $200 license fee, $200 renewal fee, $35 criminal background check fee (in addition to NMLS fees). For MLOCs; $300 for each category. For Branch Offices; $100 for each category
  • Automatic secondary review of license application information, with the MLO/MLOC ability to appeal “general fitness” decisions made based on personal history, credit history, or criminal background, which may be inaccurate or explainable by the applicant.
  • Transition language repealing HRS 454 effective 01/01/2011 or such later date approved by the Secretary of the U.S. Department of Housing and Urban Development, pursuant to the authority granted under Public Law 110-289, section 1508(a), no new license shall be issued and no license renewal shall be effectuated under chapter 454, and a person who would be regulated under this Act shall then be required to be licensed under this Act, except that a mortgage broker or mortgage solicitor licensed under chapter 454 as of 12/31/2010 who files an application for a license pursuant to this Act by 11/30/2010, and whose application is determined to be complete by the commissioner by 12/31/2010, shall be deemed in compliance with the licensing provisions of this Act until such time as the license is issued or denied by the commissioner.

Our bill is now registered in the State Senate as SB2603.

Our regulator DFI's version is in the State House of Representatives as HB2278.

HAMB looks forward to continuing to keep our lines of communication open with all individuals and groups in the mortgage industry, including the regulatory staff at the DCCA/DFI.