New Law Mortgage Loan Origination

Act 168 (2013)

Please see Act 168 for the text of the new law.

Highlights:

  • Adjusts fees, and establishes new license classes/ fees for mortgage loan originators (MLOs) that are sole proprietors, and for mortgage servicer companies that want to expand business by adding mortgage loan origination services (MS-MLOCs).

Fee adjustments/ new classes:

  • MLO fees – initial application fee changed to $600.
  • Annual license renewal fee changed to $350.
  • ŸSole proprietor MLO class established
    • $35 for an initial license application, and each annual license renewal
    • $100 reinstatement fee
    • $25/day late fee
    • $35 criminal background check fee.
  • Mortgage loan originator company (MLOC) fee  - $35 processing fee per control person.
  • MS-MLOC class established
    • $600 initial license application
    • $600 annual license renewal
    • $100 reinstatement fee
    • $25/day late fee
    • $35 per person criminal background check fee
    • Initial fee of $300 per principal office for mortgage loan recovery fund
    • $200 for each renewal.
  • Ÿ Licensees – $100 for certain amendments to NMLS requiring Commissioner review.

ŸOther provisions/ requirements:

  • Ÿ MLOC -
    • Physical presence of a designated branch manager in each branch office required.
    • 30-days advance notice of office relocation required.
  • Ÿ MLO -
    • Clarifies that an MLO who negotiates 3 or more loans a year is required to be licensed.
    • Requires MLOs to learn Hawaii law and rules as part of educational requirements for licensure.
  • Ÿ“NMLS” – term replaces former system name, “Nationwide Mortgage Licensing System”.