Bill Text: HI HB988 | 2019 | Regular Session | Amended
Bill Title: Relating To Transitional Authority In The Mortgage Industry.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2019-06-12 - Act 074, 06/07/2019 (Gov. Msg. No. 1175). [HB988 Detail]
Download: Hawaii-2019-HB988-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
988 |
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THIRTIETH LEGISLATURE, 2019 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 1 |
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A BILL FOR AN ACT
RELATING TO TRANSITIONAL AUTHORITY IN THE MORTGAGE INDUSTRY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION
1. Chapter 454F, Hawaii Revised
Statutes, is amended by adding a new part to be appropriately designated and to
read as follows:
"PART
. Transitional Authority
§454F- 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.
§454F- Employment transition of loan originators
subject to this part. 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.
§454F- 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.
"Loan
originator" has the 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.
"Secure
and Fair Enforcement for Mortgage Licensing Act" means the federal Secure
and Fair Enforcement for Mortgage Licensing Act of 2008, title 12 United States
Code section 5101 et seq.
"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.
§454F- Employment transition of loan originators;
requirements, temporary authority period.
(a)
Temporary
authority to originate loans for loan originators moving from a depository
institution to a non-depository institution shall be available as follows:
(1) Upon becoming employed by a state-licensed
mortgage company, an individual who is a registered loan originator shall be
deemed to have temporary authority to act as a mortgage loan originator in this
State for the period described in paragraph (2) if the individual:
(A) Has not had:
(i) An application for a loan originator
license denied; or
(ii) A loan originator license revoked or
suspended in any governmental jurisdiction;
(B) Has not been subject to, or served with, a
cease and desist order:
(i) In any governmental jurisdiction; or
(ii) Under section 5113(c) of the Secure and Fair
Enforcement for Mortgage Licensing Act;
(C) Has not been convicted of a misdemeanor or
felony that would preclude licensure under the laws of this State;
(D) Has submitted an application to be a
state-licensed loan originator in this State; and
(E) Was registered in NMLS as a loan originator
during the one-year period preceding the date on which the information required
under section 454F-4(d) is submitted; and
(2) For
purposes of paragraph (1), the temporary authority period shall begin on the
date on which an individual described in paragraph (1) submits the information
required under section 454F-4(d) and pays the fees required under section
454F-22, and shall end on the earliest of the date:
(A) On which the individual withdraws the
application to be a state-licensed loan originator in this State;
(B) On which this State denies, or issues a notice
of intent to deny, the application;
(C) On which this State grants a mortgage loan
originator license; or
(D) That is one hundred twenty days after the date
on which the individual submits the application, if the application is listed
on NMLS as incomplete.
(b) Temporary authority to originate loans shall
be available for state-licensed loan originators moving
interstate as follows:
(1) A
state-licensed loan originator shall be deemed to have temporary authority to
act as a mortgage loan originator in this State for the period described in
paragraph (2) if the state-licensed loan originator:
(A) Meets the requirements of subsection (a)(1)(A)
through (a)(1)(D);
(B) Is employed by a state-licensed mortgage
company in this State; and
(C) Was licensed in a state other than this State
during the thirty-day period preceding the date on which the information
required under section 454F-4(d) was submitted in connection with the
application submitted to this State; and
(2) For
purposes of paragraph (1), the temporary authority period shall begin on the
date on which the state-licensed loan originator submits the information
required under section 454F-4(d) in connection with the application submitted
to the commissioner and pays the fees required under section 454F-22, and end
on the earliest of the date:
(A) On which the state-licensed loan originator
withdraws the application to be a state-licensed loan originator in this State;
(B) On which this State denies, or issues a notice
of intent to deny, the application;
(C) On which this State grants a mortgage loan
originator license; or
(D) That is one hundred twenty days after the date
on which the state-licensed loan originator submits the application, if the
application is listed on NMLS as incomplete.
(c) With respect to temporary authority
authorized by this section:
(1) Any
person employing an individual who is deemed to have temporary authority to act
as a loan originator in this State under this part shall be subject to the
requirements of this chapter and to applicable law of this State to the same
extent as if that individual was a state-licensed loan originator licensed by
this State; and
(2) Any
individual who is deemed to have temporary authority to act as a loan
originator in this State under this part and who engages in residential
mortgage loan origination activities shall be subject to the requirements of
this chapter and to applicable law of this State to the same extent as if that
individual was a state-licensed loan originator licensed by this state.
(d) An application submitted pursuant to this
part shall not be subject to section 454F-4.9(a) through (c), pertaining to
abandoned applications."
SECTION 2. This Act shall take effect on November 24, 2019.
Report Title:
Mortgage Loan Originators; Transitional Authority; Secure and Fair Enforcement for Mortgage Licensing Act
Description:
Implements section 106 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, P.L. 115-174, by providing a one hundred twenty-day temporary authority to originate loans in this State for loan originators moving from a depository institution to a non-depository institution and state-licensed loan originators moving interstate. Takes effect 11/24/2019. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
