Mortgage Servicer Company - Clarification
In accordance with Acts 252 and 245 (Session Laws of Hawaii 2012), all mortgage servicer companies (“MSC”) who engage in mortgage loan modifications related to Hawaii residential loans are required to register on the Nationwide Mortgage Licensing System (“NMLS”) and obtain a Hawaii mortgage loan originator company (“MLOC”) license. The Division of Financial Institutions finds that in order to comply with the law, not all provisions of Chapter 454F, HRS,are applicable to an MSC that only engages in loan modification activities. The MSC is only required to register on NMLS, apply for a Hawaii MLOC license, pay any associated fees for licensure and name its control persons and a qualifying individual on the Company Form within NMLS. If an MSC engages in loan origination activities, both the MSC and the MLOs must be licensed under Chapter 454F, HRS.
The qualifying individual and the employees of an MSC engaged in mortgage loan modifications related to Hawaii residential loans do not need to be licensed as mortgage loan originators.
Act 252 (Session Laws of Hawaii 2012)
Chapter 454F, Hawaii Revised Statutes – Relating to Mortgage Loan Origination
§454F- Mortgage servicer companies; mortgage loan originators. An employee who performs mortgage loan originator activities for a mortgage servicer company is exempt from registration and licensure as a mortgage loan originator; provided that:
(1) The employee's actions are part of the employee's duties as an employee of the mortgage servicer company; and
(2) The employee only provides mortgage loan originator services with respect to a residential mortgage loan modification.
"Mortgage servicer company" means a mortgage servicer company licensed under chapter 454M.
§454F-1.5 Registration with Nationwide Mortgage Licensing System required. (a) All mortgage loan originators, mortgage loan originator companies, exempt sponsoring mortgage loan originator companies, nonprofit organizations, mortgage servicer companies, and every other person in this State that originates a residential mortgage loan, unless exempt under section 454F-2, shall register with the Nationwide Mortgage Licensing System.
Act 245 (Session Laws of Hawaii 2012)
Chapter 454M, Hawaii Revised Statutes – Relating to Mortgage Servicers
§454M- Registration with Nationwide Mortgage Licensing System. The commissioner may require all mortgage servicers to register with the Nationwide Mortgage Licensing System.
§454M-2 License required.
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(c) No person licensed as a mortgage servicer shall provide mortgage loan modifications or any other services that would require licensing pursuant to chapter 454F without first complying with the licensure requirements under chapter 454F.
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§454M-6 Prohibited activities.
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(b) It shall be unlawful for any mortgage servicer to provide any mortgage loan modifications or other services that would require licensing pursuant to chapter 454F, unless the mortgage servicer is licensed under chapter 454F.
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