2015 MS FAQ Assignment of Servicing Rights
FREQUENTLY ASKED QUESTIONS
These questions and answers constitute informal guidelines only and do not constitute legal advice or rules by DFI. Any interpretations of Chapter 454M, HRS, are specific to the facts and circumstances in each particular situation. Questions and answers will be updated and supplemented as DFI develops additional guidance. Additional answers can be found using the NMLS Resource Center.
If additional guidance is required on a unique situation in your company or for yourself, you may send your inquiry via letter or email to:
Division of Financial Institutions
Department of Commerce and Consumer Affairs
P.O. Box 2054
Honolulu, HI 96805
ASSIGNMENT OF SERVICING RIGHTS
What requirements apply to assignment of servicing rights?
Section 454M-5(k), HRS, provides that upon assignment of servicing rights on a residential mortgage loan, the mortgage servicer shall disclose to the borrower:
(1) Any notice required by RESPA, including title 12 C.F.R. section 1024.33 (mortgage servicing transfers), within the time periods prescribed therein; and
(2) A schedule of the ranges and categories of the mortgage servicer’s costs and fees for the servicer’s servicing-related activities, which shall comply with state and federal law and, if the disclosure is made by a mortgage servicer licensee, shall not exceed those reported to the Commissioner in accordance with Chapter 454M, HRS.
What requirements apply to acceptance of assignment of servicing rights?
Section 454M-5(l), HRS, provides that at the time a servicer accepts assignment of servicing rights for a mortgage loan, the servicer shall disclose to the borrower all of the following:
(1) Any notice required by RESPA;
(2) A schedule of the ranges and categories of its costs and fees for its servicing-related activities, which shall comply with Chapter 454M, HRS, and which shall not exceed those reported to the Commissioner; and
(3) A notice in a form and content acceptable to the Commissioner that the servicer is licensed by the Commissioner and that complaints about the servicer may be submitted to the Commissioner.