reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-3 Requirement of licensure.

§454F-3 Requirement of licensure.
(a) Effective January 1, 2011, 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), title 12 United States Code section 5107(e), a person, unless specifically exempted from this chapter, shall not engage in the business of a mortgage loan originator or mortgage loan originator company 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 or mortgage loan originator company shall register with and maintain a valid unique identifier issued by NMLS and shall submit to NMLS any reports that shall be in a form and contain information as NMLS may require.
(b) An independent contractor shall not engage in the activities of a loan processor or underwriter without a license pursuant to section 454F-4. Each independent contractor licensed as a mortgage loan originator shall obtain and maintain a valid unique identifier issued by NMLS. An independent contractor who is not an exclusive agent of a mortgage loan originator company, in addition to obtaining a license as a mortgage loan originator, shall obtain a license as a mortgage loan originator company.
(c) A loan processor or underwriter who does not represent to the public, through advertising or other means of communicating or providing information, including through 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, who does not advertise that the individual can or will perform any of the activities of a mortgage loan originator, and who does not engage in the activities of a mortgage loan originator shall not be required to be licensed under this chapter.
(d) If this section or any provision of this section conflicts at any time with any federal law, then the federal law shall prevail and this section or the relevant provisions of this section shall become ineffective and invalid. The ineffectiveness or invalidity of this section or any of its provisions shall not affect any other provisions or applications of this chapter which shall be given effect without the invalid provision or application, and to this end, the provisions of this section are severable. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §10; am L 2013, c 168, §6; am L 2016, c 122, §7]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-4 License and registration; application; issuance.

§454F-4 License and registration; application; issuance.
(a) Applicants for a license shall apply in a form as prescribed by NMLS or by the commissioner.
(b) To fulfill the purposes of this chapter, the commissioner may enter into agreements or contracts with NMLS or other entities to use NMLS to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this chapter.
(c) For the purpose and the extent necessary to participate in NMLS, the commissioner may waive or modify, in whole or in part, by rule or order, any or all of the requirements of this chapter and establish new requirements as reasonably necessary to participate in NMLS.
(d) In connection with an application for a license under this chapter, the applicant, at a minimum, shall furnish to NMLS information concerning the applicant's identity, including:
(1) Fingerprints of the applicant or, if an applicant is not an individual, each of the applicant's control persons, executive officers, directors, general partners, and managing members for submission to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive the fingerprints for a state, national, and international criminal history background check, accompanied by the applicable fee charged by the entities conducting the criminal history background check; and
(2) Personal history and experience of the applicant or, if an applicant is not an individual, each of the applicant's control persons, executive officers, directors, general partners, and managing members in a form prescribed by NMLS including the submission of authorization for NMLS and the commissioner to obtain:
(A) An independent credit report obtained from a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act, title 15 United States Code section 1681 et seq.; and
(B) Information related to any administrative, civil, or criminal findings by any governmental jurisdiction;
provided that the commissioner may use any information obtained pursuant to this subsection or through NMLS to determine an applicant's demonstrated financial responsibility, character, and general fitness for licensure.
(e) The commissioner may use NMLS as an agent for requesting information from and distributing information to the Department of Justice or any governmental agency.
(f) The commissioner may use NMLS as an agent for requesting and distributing information to and from any source directed by the commissioner.
(g) An applicant for a license as a mortgage loan originator company that is a person other than an individual shall be registered with the business registration division of the department of commerce and consumer affairs to do business in this State before a license pursuant to this chapter shall be granted. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §11; am L 2011, c 194, §5; am L 2013, c 168, § §7, 20; am L 2017, c 150, §4]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-4.5 Automatic secondary review of license application.

§454F-4.5 Automatic secondary review of license application.
(a) For each application that was determined on initial review to fail to meet the criteria for licensure, the commissioner shall provide a secondary level of review of the application which shall include the:
(1) Overall character and fitness of the applicant, taking into account all relevant circumstances and weighing all mitigating factors appropriately; and
(2) Assurance that non-discretionary licensing criteria have been applied correctly.
(b) The applicant, or in the case of an applicant that is not an individual, each of the applicant's control persons, executive officers, directors, general partners, and managing members, shall submit authorization to the commissioner for the commissioner to conduct background checks to determine or verify the information in subsection (a) in each state where the person has conducted mortgage loan origination activities. Authorization pursuant to this subsection shall include consent to provide additional fingerprints, if necessary, to law enforcement or regulatory bodies in other states. [L 2010, c 84, pt of §3; am L 2011, c 194, §6; am L 2017, c 150, §5]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-4.8 Decision denying application subject to administrative hearing. (a) Within fifteen days following receipt of a decision denying an application, an applicant may petition the commissioner for an administrative hearing that shall be held in accordance with chapter 91 and the rules of the department of commerce and consumer affairs. If a petition for an administrative hearing is not filed within the time specified, the commissioner's decision denying the application shall become a final decision and order denying the application. (b) Upon the receipt of a petition for an administrative hearing, the commissioner shall assign the petition to a hearings officer for further proceedings pursuant to the rules of the department of commerce and consumer affairs. The commissioner shall issue a written final decision and order, following the hearings officer's transmittal to the commissioner of the entire record together with the recommended decision, any timely filed exceptions, and any timely filed statements in support of the recommended decision. [L 2011, c 194, pt of §1]

§
454F-4.8 Decision denying application subject to administrative hearing.
(a) Within fifteen days following receipt of a decision denying an application, an applicant may petition the commissioner for an administrative hearing that shall be held in accordance with chapter 91 and the rules of the department of commerce and consumer affairs. If a petition for an administrative hearing is not filed within the time specified, the commissioner's decision denying the application shall become a final decision and order denying the application.
(b) Upon the receipt of a petition for an administrative hearing, the commissioner shall assign the petition to a hearings officer for further proceedings pursuant to the rules of the department of commerce and consumer affairs. The commissioner shall issue a written final decision and order, following the hearings officer's transmittal to the commissioner of the entire record together with the recommended decision, any timely filed exceptions, and any timely filed statements in support of the recommended decision. [L 2011, c 194, pt of §1]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-6 Pre-licensing and re-licensing; education of mortgage loan originators.

§454F-6 Pre-licensing and re-licensing; education of mortgage loan originators.
(a) An applicant for licensure as a mortgage loan originator shall complete at least twenty hours of pre-licensing education approved in accordance with subsection (b) that includes:
(1) Three hours of federal law and regulations and three hours of the State's law and rules;
(2) Three hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues; and
(3) Two hours of training related to lending standards for the nontraditional mortgage product marketplace.
Upon completion of the pre-licensing education, an individual has up to twelve months to submit an application for licensure as a mortgage loan originator. An individual who submits an application after the twelve months have expired will be required to repeat the pre-licensing education requirements.
(b) Pre-licensing education courses shall be reviewed and approved by NMLS based upon reasonable standards. Review and approval of a pre-licensing education course shall include review and approval of the course provider.
(c) Nothing in this section shall prohibit the use of any pre-licensing education course approved by NMLS that is provided by the employer of the applicant, an entity that is affiliated with the applicant by an agency contract, or any subsidiary or affiliate of the employer or entity.
(d) Pre-licensing education may be offered either in a classroom, online, or by any other means approved by NMLS.
(e) The pre-licensing education requirements approved by NMLS for any state shall be accepted as credit towards completion of pre-licensing education requirements in this State.
(f) A person previously licensed under this chapter and applying to be licensed under this chapter shall prove to the satisfaction of the commissioner that the person has completed all of the continuing education requirements for the year in which the license was last held. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §13; am L 2013, c 168, § §8, 20; am L 2016, c 122, §9]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-7 Testing of mortgage loan originators.

§454F-7 Testing of mortgage loan originators.
(a) To meet the written test requirement in section 454F-5, an applicant for licensure as a mortgage loan originator shall pass, in accordance with the standards established under this section, a qualified written test developed by NMLS and administered by a test provider approved by NMLS based upon reasonable standards.
(b) A written test shall not be treated as a qualified written test for purposes of subsection (a) unless the test adequately measures the applicant's knowledge and comprehension in appropriate subject areas, including:
(1) Ethics;
(2) Federal law and regulations pertaining to mortgage origination;
(3) The State's law and rules pertaining to mortgage origination; and
(4) Federal and the State's law, rules, and regulations, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace, and fair lending issues.
(c) Nothing in this section shall prohibit a test provider approved by NMLS from providing a test at the location of the employer of the applicant, the location of any subsidiary or affiliate of the employer of the applicant, or the location of any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator.
(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 take a test three times with each retest 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 an exempt registered mortgage loan originator, shall retake the test. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §14; am L 2013, c 168, §9; am L 2016, c 122, §10]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-8 Standards for license renewal.

§454F-8 Standards for license renewal.
(a) The minimum standards for license renewal for mortgage loan originators shall include the following:
(1) The mortgage loan originator continues to meet the minimum standards for licensure under section 454F-5;
(2) The mortgage loan originator has satisfied the annual continuing education requirements in section 454F-9 prior to requesting renewal; and
(3) The mortgage loan originator has paid all required fees for renewal of the license.
(b) The minimum standards for license renewal for mortgage loan originator companies shall include the following:
(1) The mortgage loan originator company continues to meet the minimum standards for licensure established pursuant to section 454F-5;
(2) The mortgage loan originator company's qualified individual and every branch manager have satisfied the minimum standards for license renewal;
(3) The mortgage loan originator company has paid all required fees for renewal of the license; and
(4) The mortgage loan originator company is registered with the business registration division of the department of commerce and consumer affairs.
(c) The license of a mortgage loan originator or mortgage loan originator company that fails to satisfy the minimum standards for license renewal shall expire. The commissioner may adopt procedures for the reinstatement of expired licenses consistent with section 454F-8.5 and the standards established by NMLS. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §15; am L 2011, c 194, §8; am L 2012, c 252, §9; am L 2013, c 168, §10; am L 2014, c 198, §3; am L 2016, c 122, §11]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-8.5 Reinstatement of expired licenses.

§454F-8.5 Reinstatement of expired licenses.
(a) A license issued pursuant to this chapter that expires due to failure to satisfy the minimum standards for renewal may be reinstated if the licensee meets the following requirements:
(1) The licensee applies for reinstatement between January 1 and February 28 of the year immediately following the year in which the license expired;
(2) All continuing education courses required for license renewal for the year in which the license expired shall be completed between January 1 and February 28 of the year immediately following the year in which the license expired; provided that continuing education courses that satisfy the previous year's requirement shall not also be credited toward satisfying the current year's continuing education requirements; and
(3) The licensee shall pay all applicable licensing, reinstatement, and late fees assessed by the commissioner.
(b) A licensee that fails to meet the requirements for renewal of an expired license established by this section may apply for a new license and shall meet the requirements for new licenses in effect at the time of application. [L 2010, c 84, pt of §3]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-9 Continuing education; mortgage loan originators.

§454F-9 Continuing education; mortgage loan originators.
(a) Each year, a licensed mortgage loan originator shall complete at least eight hours of education approved in accordance with subsection (b) that shall include:
(1) Three hours of federal law and regulations;
(2) One hour of the State's law and rules;
(3) Two hours of ethics that shall include instruction on fraud, consumer protection, and fair lending issues; and
(4) Two hours of training related to lending standards for the nontraditional mortgage product marketplace.
(b) For purposes of subsection (a), continuing education courses shall be reviewed and approved by NMLS based upon reasonable standards. Review and approval of a continuing education course shall include review and approval of the course provider.
(c) Nothing in this section shall prohibit the use of any education course that is approved by NMLS and provided by the employer of the mortgage loan originator, an entity that is affiliated with the mortgage loan originator by an agency contract, or any subsidiary or affiliate of the employer or entity.
(d) Continuing education may be offered either in a classroom, online, or by any other means approved by NMLS.
(e) A licensed mortgage loan originator:
(1) May only receive credit for a continuing education course in the year in which the course is taken, except for continuing education credits received pursuant to this chapter; and
(2) May not take the same approved course in the same or successive years to meet the annual requirements for continuing education; provided that the term "successive years" shall mean the two years following the year in which a mortgage loan originator takes an approved course.
(f) A licensed mortgage loan originator who is an approved instructor of an approved continuing education course may receive continuing education credit for the course taught at the rate of two hours credit for every one hour taught.
(g) Continuing education courses as described in subsection (a) and approved by NMLS for any state, that are successfully completed by a licensed mortgage loan originator, shall be accepted as credit towards completion of continuing education requirements in this State.
(h) A licensed mortgage loan originator who subsequently becomes unlicensed shall complete the continuing education requirements for the last year in which the license was held prior to issuance of a new or renewed license.
(i) The license of a licensee meeting the requirements of section 454F-8(a)(1) and (3) shall expire if the licensee fails to meet the minimum requirements for continuing education. Reinstatement of the expired license shall be allowed as provided for in section 454F-8.5. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §16; am L 2011, c 194, §9; am L 2013, c 168, § §11, 20; am L 2016, c 122, §12]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-10 Authority to require license.

§454F-10 Authority to require license.
In addition to any other duties imposed upon the commissioner, the commissioner shall require mortgage loan originators and mortgage loan originator companies to be licensed and registered through NMLS. The commissioner is authorized to participate in NMLS. The commissioner may establish by rule pursuant to chapter 91, requirements for mortgage loan originators and mortgage loan originator companies, including:
(1) Background checks of:
(A) Criminal history through fingerprint or other databases;
(B) Civil or administrative records;
(C) Credit history; and
(D) Any other source deemed necessary by NMLS;
(2) Fees to apply for or renew licenses through NMLS;
(3) The setting or resetting as necessary of license renewal and reporting dates;
(4) Requirements for amending or surrendering a license; and
(5) Any other activity the commissioner deems necessary to participate in NMLS. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §17; am L 2013, c 168, §12; am L 2016, c 122, §13]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-10.6 Voluntary cessation of operation; surrender of license.

§454F-10.6 Voluntary cessation of operation; surrender of license.
(a) Subject to the approval of the commissioner, a licensee may voluntarily cease activity for which a license to operate has been issued under this chapter by delivering to the commissioner a written notice of surrender, which shall include but not be limited to:
(1) A plan of cessation of business;
(2) Provisions for the transfer or assumption of assets;
(3) Provisions for pending applications or transactions;
(4) Provisions for payment or assumption of liabilities;
(5) Provisions for the disposition of individual mortgage loan originator licenses; and
(6) Provisions for transfer or assumption of all trust, agency, and other fiduciary relationships and accounts.
(b) The commissioner shall approve the surrender if:
(1) The commissioner is satisfied with the plan as set forth by the licensee; and
(2) No other reason exists to deny the request for surrender;
provided that the commissioner may impose any restrictions and conditions as the commissioner deems appropriate.
(c) The surrender shall not affect rights and duties that have matured, penalties that were incurred, and proceedings that were begun before the effective date of the surrender of a license under this section. [L 2010, c 84, pt of §3]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-10.7 Change in control of a licensee; fees.

§454F-10.7 Change in control of a licensee; fees.
(a) A licensee shall submit to the commissioner an application requesting approval of a proposed change of control of the licensee, accompanied by a nonrefundable application fee of $500, payable to the division.
(b) The commissioner shall approve a request for change of control under subsection (a) if, after investigation, the commissioner determines that the person or group of persons who will obtain control will be in compliance with this chapter upon approval of the application for a proposed change of control of the licensee and will have the competence, experience, character, and general fitness to control the licensee or person in control of the licensee in a lawful and proper manner, and that the interests of the public will not be jeopardized by the change of control. [L 2010, c 84, pt of §3; am L 2011, c 194, §11; am L 2017, c 150, §7]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-11 NMLS registry information; challenge process.

§454F-11 NMLS registry information; challenge process.
The commissioner shall establish a process by rule pursuant to chapter 91 whereby a licensee may challenge information entered into NMLS by the commissioner. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §18; am L 2013, c 168, §14]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-12 Enforcement authorities; violations; penalties.

§454F-12 Enforcement authorities; violations; penalties.
(a) To ensure the effective supervision and enforcement of this chapter, the commissioner may, pursuant to chapter 91:
(1) Deny, suspend, revoke, condition, or decline to renew a license because of a violation of this chapter, rules, an order, or a directive entered under this chapter;
(2) Deny, suspend, revoke, condition, or decline to renew a license if an applicant or licensee fails at any time to meet the requirements of section 454F-4, 454F-6, or 454F-8, violates section 454F-17, or withholds information or makes a material misstatement in an application for a license or renewal of a license;
(3) Order restitution against persons subject to this chapter for violations of this chapter;
(4) Impose fines on persons subject to this chapter; and
(5) Issue orders or directives under this chapter as follows:
(A) Order or direct persons subject to this chapter to cease and desist from conducting business, including immediate temporary orders to cease and desist;
(B) Order or direct persons subject to this chapter to cease any harmful activities or violations of this chapter, including immediate temporary orders to cease and desist;
(C) Enter immediate temporary orders to cease doing business under a license issued pursuant to the authority granted under this chapter if the commissioner determines that the license was erroneously granted or the licensee or any person subject to this chapter is currently in violation of this chapter; or
(D) Order or direct any other affirmative action as the commissioner deems necessary.
(b) The commissioner may impose an administrative fine on a licensee or person subject to this chapter if the commissioner finds on the record after notice and opportunity for hearing that the licensee or person subject to this chapter has violated or failed to comply with any requirement of this chapter or any rule prescribed by the commissioner under this chapter or order issued under the authority of this chapter.
(c) The maximum fine for each act or omission described in subsection (b) shall be $25,000.
(d) Each violation or failure to comply with any directive or order of the commissioner shall be a separate and distinct violation.
(e) Notwithstanding section 480-13.5, any violation of this chapter that is directed toward, targets, or injures an elder, may be subject to an additional civil penalty not in excess of $10,000 for each violation in addition to any other fines or penalties assessed for the violation. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §19; am L 2014, c 198, §5]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-14 Confidentiality.

§454F-14 Confidentiality.
(a) Except as otherwise provided in Public Law 110-289, section 1512, the requirements under any federal or state law regarding the privacy or confidentiality of any information or material provided to NMLS, and any privilege arising under federal or state law, including the rules of any federal or state court, with respect to the information or material shall continue to apply to the information or material after the information or material has been disclosed to NMLS. The information and material may be shared with all state and federal regulatory officials with mortgage industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by federal or state law.
(b) For these purposes, the commissioner is authorized to enter into agreements or sharing arrangements with other governmental agencies, the Conference of State Bank Supervisors, the American Association of Residential Mortgage Regulators, or other associations representing governmental agencies as established by rule or order of the commissioner.
(c) Information or material that is subject to a privilege or confidentiality under subsection (a) shall not be subject to:
(1) Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or an agency of the federal government or a state; or
(2) Subpoena or discovery, or admission into evidence, in any private civil action or administrative process, unless with respect to any privilege held by NMLS applicable to the information or material; provided that the person to whom the information or material pertains waives, in whole or in part, in the discretion of such person, that privilege.
(d) Notwithstanding chapter 92F, the examination process and related information and documents, including the reports of examination, are confidential and are not subject to discovery or disclosure in civil or criminal lawsuits.
(e) Notwithstanding any law to the contrary, the disclosure of confidential supervisory information or any information or material described in subsection (a) that is inconsistent with subsection (a) shall be superseded by the requirements of this section.
(f) This section shall not apply to information or material relating to the employment history of, and publicly adjudicated disciplinary and enforcement actions against, mortgage loan originators and mortgage loan originator companies that are included in NMLS for access by the public. [L Sp 2009, c 32, pt of §2; am L 2013, c 168, §20; am L 2014, c 198, §6; am L 2016, c 122, §14]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-16 Mortgage call reports.

§454F-16 Mortgage call reports.
Each licensee and exempt sponsoring mortgage loan originator company, as may be required by title 12 United States Code sections 5101 to 5116, shall submit quarterly to NMLS reports of condition, using the form entitled "FINANCIAL CONDITION" or "RESIDENTIAL MORTGAGE LOAN ACTIVITY", which shall be in the form and contain the information as NMLS may require. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §21; am L 2013, c 168, §16; am L 2014, c 198, §7]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-18 Powers of commissioner.

§454F-18 Powers of commissioner.
(a) The commissioner may adopt rules pursuant to chapter 91 as the commissioner deems necessary for the administration of this chapter.
(b) In addition to any other powers provided by law, the commissioner shall have the authority to:
(1) Administer and enforce the provisions and requirements of this chapter;
(2) Adopt, amend, or repeal rules and issue declaratory rulings or informal nonbinding interpretations;
(3) Develop requirements for licensure through rules, including establishing the content of the written tests required under section 454F-7;
(4) Investigate and conduct hearings regarding any violation of this chapter or any rule or order of, or agreement with, the commissioner;
(5) Create fact-finding committees that may make recommendations to the commissioner for the commissioner's deliberations;
(6) Require an applicant or any of its control persons, executive officers, directors, general partners, and managing members to disclose their relevant criminal history and request a criminal history record check in accordance with chapter 846;
(7) Contract with or employ qualified persons, including investigators, examiners, or auditors who may be exempt from chapter 76 and who shall assist the commissioner in exercising the commissioner's powers and duties;
(8) Require that all fees, fines, and charges collected by the commissioner under this chapter, except for fees designated for deposit into the mortgage loan recovery fund pursuant to section 454F-41, be deposited into the compliance resolution fund established pursuant to section 26-9(o);
(9) Process and investigate complaints, subpoena witnesses and documents, administer oaths, and receive affidavits and oral testimony, including telephonic communications, and do any and all things necessary or incidental to the exercise of the commissioner's power and duties, including the authority to conduct contested case proceedings under chapter 91; and
(10) Require a licensee to comply with any rule, guidance, guideline, statement, supervisory policy or any similar proclamation issued or adopted by the Federal Deposit Insurance Corporation to the same extent and in the same manner as a bank chartered by the State or in the alternative, any policy position of the Conference of State Bank Supervisors. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §23; am L 2017, c 150, §8]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-19 Unique identifier shown.

§454F-19 Unique identifier shown.
The unique identifier of any person originating a residential mortgage loan, except a person who is exempt from this chapter, shall be clearly shown on all residential mortgage loan application forms, solicitations, and advertisements, including business cards or websites, and any other documents as established by rule or order of the commissioner. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §24; am L 2014, c 198, §8]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-20 Report to NMLS.

§454F-20 Report to NMLS.
Notwithstanding any other law to the contrary, the commissioner is required to regularly report violations of this chapter, as well as enforcement actions and other relevant information, to NMLS subject to the confidentiality provisions contained in section 454F-14. [L Sp 2009, c 32, pt of §2; am L 2013, c 168, §17]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-23 Payment of fees.

§454F-23 Payment of fees.
All fees collected pursuant to section 454F-22, administrative fines, and other charges collected pursuant to this chapter, except fees designated for deposit into the mortgage loan recovery fund shall be deposited into the compliance resolution fund established pursuant to section 26-9(o) and shall be payable through NMLS, to the extent allowed by NMLS. Fees not eligible for payment through NMLS shall be deposited into a separate account within the compliance resolution fund for use by the division. [L 2010, c 84, pt of §3; am L 2013, c 168, §20]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-24 Limited exemption for mortgage loan originators employed by mortgage servicers.

§454F-24 Limited exemption for mortgage loan originators employed by mortgage servicers.
An employee who performs mortgage loan originator activities for a mortgage servicer 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; and
(2) The employee's mortgage loan originator services are limited to residential loan modifications and processing the approval of loan assumptions. [L 2012, c 252, pt of §1; am L 2014, c 198, §10; am L 2016, c 122, §17]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-25 Nonprofit organizations; mortgage loan originators.

§454F-25 Nonprofit organizations; mortgage loan originators.
(a) An employee who performs mortgage loan originator activities for a nonprofit organization 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 nonprofit organization;
(2) The employee only provides mortgage loan originator services with respect to residential mortgage loans with terms favorable to the borrower; and
(3) The nonprofit organization maintains a valid registration as a nonprofit organization in NMLS and a unique identifier through NMLS.
(b) The commissioner shall periodically examine the books and activities of nonprofit organizations as defined in section 454F-1 and shall revoke an organization's registration as a nonprofit organization with NMLS if the nonprofit organization fails to meet the requirements to be a nonprofit organization.
(c) In determining whether a residential mortgage loan has terms favorable to the borrower, the commissioner shall examine:
(1) The interest rate that the home loan would carry;
(2) The charges that are imposed on the borrower for origination, application, closing, and other costs;
(3) Whether the mortgage includes any predatory characteristics;
(4) The borrower's ability to repay the loan; and
(5) The term of the mortgage.
(d) A nonprofit organization shall designate an employee who shall have the duty to directly manage and supervise the mortgage loan origination activity of the nonprofit organization, including:
(1) The maintenance of all records, contracts, and documents of the nonprofit organization relating to mortgage loan origination activity;
(2) All mortgage loan originator agreements and mortgage loan documents and the handling of these documents by the nonprofit organization's employees, or by independent contractors located at or working out of the nonprofit organization; and
(3) All employees of the nonprofit organization, and all independent contractors of the nonprofit organization located at or working out of the nonprofit organization, who are working on or handling mortgage loan origination activity of the nonprofit organization. [L 2012, c 252, pt of §1; am L 2014, c 9, §7 and c 198, §11; am L 2017, c 150, §10]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-41 to 454F-47 designated as Part II pursuant to §23G-15.

Revision Note
Sections 454F-41 to 454F-47 designated as Part II pursuant to §23G-15.
§454F-41
Mortgage loan recovery fund; use of fund; fees.
(a) The commissioner shall establish and maintain a fund that shall be known as the mortgage loan recovery fund, from which any person aggrieved by an act, representation, transaction, or conduct of a mortgage loan originator company licensee involving fraud, misrepresentation, or deceit in violation of this chapter may recover, by final judgment of the circuit court or district court of the county where the violation occurred, an amount of ten per cent of the residential mortgage loan, but not more than $150,000, including court costs and fees as set by law and reasonable attorney fees as determined by the court, for damages sustained by the fraud, misrepresentation, or deceit of a mortgage loan originator company licensee.
In addition to application fees and any fees required by NMLS, a mortgage loan originator licensee shall pay to the division a mortgage loan recovery fund fee in the sum of $200.
Upon application for renewal of a license under this chapter, a mortgage loan originator licensee shall pay to the division, in addition to the licensee's license renewal fee and fees required by NMLS, a mortgage loan recovery fund fee in the sum of $100.
The $100 mortgage loan recovery fund fee collected pursuant to this subsection shall be refundable upon the denial of a license renewal by the commissioner.
(b) When the mortgage loan recovery fund attains a funding level of $750,000, the commissioner may make a finding to adjust the fees payable to the fund or may determine that payments made by mortgage loan originator licensees shall cease. If acceptance of payments is ceased, it shall remain ceased until the funding level falls below $750,000. If the funding level falls below $250,000 after the first five years of the establishment of the fund, the commissioner may adjust the fees to a reasonable level to attain a funding level of $750,000.
(c) The commissioner or the commissioner's designee, as the manager of the mortgage loan recovery fund, shall be authorized to expend moneys in the mortgage loan recovery fund to:
(1) Retain private legal counsel to represent the commissioner or the division in any action that involves or may result in payment from the mortgage loan recovery fund;
(2) Retain a certified public accountant for accounting and auditing of the mortgage loan recovery fund;
(3) Employ necessary personnel, not subject to chapter 76, to assist the commissioner in exercising the commissioner's powers and duties with respect to the mortgage loan recovery fund; and
(4) Retain a consultant to recover and collect any payments from the mortgage loan recovery fund, plus interest from the judgment debtor. [L 2010, c 84, pt of §3; am L 2013, c 168, §19; am L 2015, c 64, §2; am L 2016, c 122, §18; am L 2019, c 29, §9; am L 2022, c 64, §1]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-43 Management of fund.

§454F-43 Management of fund.
(a) The sums received by the division pursuant to section 454F-41 for deposit into the mortgage loan recovery fund shall be held by the commissioner or the commissioner's designee to carry out the purpose of the mortgage loan recovery fund. These funds may be invested and reinvested in the same manner as funds of the state employees' retirement system.
(b) The commissioner or the commissioner's designee, as the manager of the mortgage loan recovery fund, shall be authorized to expend moneys from the fund to retain private legal counsel to represent the commissioner in any action involving the mortgage loan recovery fund. [L 2010, c 84, pt of §3]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-44 Standing.

§454F-44 Standing.
The commissioner shall have standing to intervene in and defend any action to recover from the mortgage loan recovery fund, including by entering an appearance, filing an answer, appearing at court hearings, and taking any recourse through appropriate methods of review. The commissioner or the commissioner's legal representative shall be served with all pleadings in any action pursuant to this section. [L 2010, c 84, pt of §3]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-45 Subrogation of rights.

§454F-45 Subrogation of rights.
When, pursuant to court order, the commissioner has paid any sum to a judgment creditor from the mortgage loan recovery fund, the commissioner shall be subrogated to all of the rights of the judgment creditor. The judgment creditor shall assign all of the judgment creditor's rights, title, and interest in the judgment to the commissioner. Any interest collected by the commissioner pursuant to this section shall be deposited into the mortgage loan recovery fund. [L 2010, c 84, pt of §3]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-46 Waiver of rights.

§454F-46 Waiver of rights.
The failure of an aggrieved person to comply with sections 454F-41 and 454F-42 shall constitute a waiver of the rights contained in those sections. [L 2010, c 84, pt of §3]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-47 Disciplinary action against licensee.

§454F-47 Disciplinary action against licensee.
No provision of this chapter relating to the mortgage loan recovery fund shall limit the authority of the commissioner to take disciplinary action against any licensee for a violation of this chapter or of the rules and orders of the commissioner adopted pursuant to this chapter. Repayment of obligations to the mortgage loan recovery fund by a licensee shall not nullify or modify the effect of any other disciplinary proceeding brought pursuant to this chapter. [L 2010, c 84, pt of §3]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-51 Purpose.

§454F-51 Purpose.
The purpose of this part is to implement section 106 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, P.L. 115-174. [L 2019, c 74, pt of §1]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-52 Employment transition of loan originators.

§454F-52 Employment transition of loan originators.
In anticipation of satisfying all licensure requirements set out in part I, an individual shall be deemed to have temporary authority to act as a mortgage loan originator in this State as provided by and subject to the requirements of this part. [L 2019, c 74, pt of §1]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454F. Secure and Fair Enforcement for Mortgage Licensing Act › 454F-53 Definitions.

§454F-53 Definitions.
In this part, unless the context or subject matter otherwise requires:
"Depository institution" has the same meaning as in title 12 United States Code section 5102.
"Federal banking agency" has the same meaning as in title 12 United States Code section 5102.
"Federal SAFE Act" means the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, title 12 United States Code section 5101 et seq.
"Loan originator" has the same meaning as in title 12 United States Code section 5102.
"Registered loan originator" means any individual who:
(1) Meets the definition of loan originator and is an employee of:
(A) A depository institution;
(B) A subsidiary that is:
(i) Owned and controlled by a 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, NMLS.
"State" means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.
"State-licensed loan originator" means any individual who:
(1) Is a loan originator;
(2) Is not an employee of:
(A) A depository institution;
(B) A subsidiary that is:
(i) Owned and controlled by a depository institution; and
(ii) Regulated by a federal banking agency; or
(C) An institution regulated by the Farm Credit Administration; and
(3) Is licensed by a state or by the Director of the Bureau of Consumer Financial Protection and registered as a loan originator with, and maintains a unique identifier through, NMLS.
"State-licensed mortgage company" means an entity that is licensed or registered under this chapter to engage in residential mortgage loan origination and processing activities.
"This State" means the State of Hawaii. [L 2019, c 74, pt of §1]
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454M. Mortgage Servicers › 454M-2 License required.

§454M-2 License required.
(a) No person except those exempted under this chapter shall engage in the business of mortgage servicing without a license as provided in this chapter.
(b) No person shall engage in the business of mortgage servicing in this State unless the person providing services has a physical presence in the State pursuant to section 454M-5(b)(6). [L 2009, c 106, pt of §1; am L 2011, c 48, §8; am L 2012, c 245, §3; am L 2015, c 62, §3; am L 2016, c 122, §20]
Cross References
Enforcement authorities, see §454M-8.7.
2023 Hawaii Revised Statutes › Title 25. Professions and Occupations › 454M. Mortgage Servicers › 454M-2.5 Unlicensed foreclosure actions voided.

§454M-2.5 Unlicensed foreclosure actions voided.
Any action taken in connection with a mortgage foreclosure under chapter 667 by a nonexempt person who engages in the business of mortgage servicing without a license as provided in this chapter shall be void for purposes of chapter 667. [L 2011, c 48, §2]