On May 28th, 2015 new law became effective requiring a Hawaii mortgage loan servicer surety bond from all licensees in the state. As announced by the Hawaii Division of Financial Institutions, “Section 4 of Act 62 (2015).  Section 9 of Act 62 (2015) provides that for persons holding a current license under Chapter 454M, HRS, on the effective date of Act 62 (2015) [May 28, 2015], the new surety bond requirements under Section 454M-4(j) to (n), HRS, apply as of the date of the licensee’s next license renewal under Chapter 454M, HRS, but no later than December 31, 2015.  Subject to the foregoing:

Before a mortgage servicer’s license becomes effective, the applicant or licensee shall file with the Commissioner a surety bond written by a surety authorized to write surety bonds in this State, covering the applicant or licensee’s principal office and any branch office from which the applicant or licensee acts as a mortgage servicer, in a penal sum of $100,000.  No mortgage servicer licensee shall act as a mortgage servicer in this State without maintaining the surety bond required by Section 454M-4, HRS.

The mortgage loan servicer surety bond shall be:
(1)       In a form approved by the attorney general of Hawaii; and
(2)       Conditioned upon the mortgage servicer licensee faithfully performing any and all written agreements and/or commitments with or for the benefit of borrowers and mortgagees, truly and faithfully accounting for all funds received from a borrower or mortgagee in the person’s capacity as a mortgage loan servicer, and conducting the mortgage business consistent with the provisions of Chapter 454M, HRS, to perform any written agreements or commitments.  Section 454M-4(j), HRS.

The application process is explained on the Hawaii Licensing Page of the NMLS.  (Click on the Mortgage Servicer License “New Application” link for detailed instructions) The mortgage servicer license fee is $875. Statutory license requirements are set out in Section 454M-4, HRS.  The application is processed through NMLS, an online mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the state licensing and registration of state-licensed loan originators and other financial services providers.   The Commissioner’s authority to require all mortgage servicers to register with NMLS is set out in Section 454M-4.5, HRS, and participation in NMLS is pursuant to Section 454M-4, HRS.”

Hawaii surety leader, Surety One, Inc. is a specialist in the bonding needs of the mortgage loan brokers, servicers and originators.  We offer both the surety and fidelity bonds required of mortgage professionals in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Do you operate in multiple states?  View our state-by-state report of mortgage broker bond requirements here.  Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email us at Underwriting@SuretyOne.com for an Hawaii mortgage loan servicer surety bond application or information on ANY surety or fidelity bond need.

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