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.
- Sole 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.
- Licensees – $100 for certain amendments to NMLS requiring Commissioner review.
Other provisions/ requirements:
- MLOC –
- Physical presence of a designated branch manager in each branch office required.
- 30-days advance notice of office relocation required.
- 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.
- “NMLS” – term replaces former system name, “Nationwide Mortgage Licensing System”.