Financial Institutions

On October 1, 2013, the Hawaii DFI adopted the new SAFE MLO National Test Component with Uniform State Content.  Hawaii DFI is one of 25 states that are early adopters of the test, though additional states are eventually expected to adopt the new SAFE MLO National Test Component with Uniform State Content.

The Federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the SAFE Act) requires mortgage loan originators (MLOs) to pass the SAFE MLO test before they can be licensed through the Nationwide Mortgage Licensing System and Registry (NMLS).  The new National Test Component with Uniform State Content replaces two test components – the National and a State Component – which applicants had been required to pass.  This new test will allow MLOs seeking a license with Hawaii DFI to take a single test component and satisfy the SAFE Act and Hawaii DFI testing requirements.

“The adoption of the new SAFE MLO test makes the license process more efficient for MLOs seeking a license in Hawaii DFI.” said Iris Ikeda Catalani, Commissioner of Financial Institutions.    “Further, if an MLO wants to be licensed in Hawaii, Hawaii DFI now requires that MLOs must learn Hawaii’s SAFE Act as part of the pre-education and continuing education license requirement.” explained Commissioner Ikeda Catalani. In addition, MLOs seeking to hold licenses in multiple states will no longer be required to pass the state-specific component for each state in which they wish to do business.  Under the new National Test Component with Uniform State Content, a license applicant who passes the test will not need to take any additional state-specific tests to seek a license with the 25 state agencies that have adopted the test.

“This is just one more way the Hawaii DFI is seeking to streamline supervisory processes and increase the number of licensed MLOs, while continuing to ensure the safety and soundness of entities operating within our state and protecting our citizens.” said Commissioner Ikeda Catalani.