Report Title:

Mortgage Brokers and Solicitors

 

Description:

Exempts bank holding companies and related entities from mortgage broker and solicitor licensing requirements.

 


THE SENATE

S.B. NO.

1006

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO MORTGAGE BROKERS AND SOLICITORS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Section 454-2, Hawaii Revised Statutes, is amended to read as follows:

     "§454-2  Exemptions.  This chapter does not apply to the following:

     (1)  Banks, bank holding companies, trust companies, building and loan associations, pension trusts, credit unions, insurance companies, financial services loan companies, or federally licensed small business investment companies, authorized under any law of this State or of the United States to do business in the State; as well as the operating subsidiaries of a bank or credit union, the subsidiaries that a bank or credit union has been granted approval by the federal government to invest in, own, or operate, and any exclusive agent of a bank, a savings association, or a credit union;

     (2)  A person making or acquiring a mortgage loan with one's own funds for one's own investment without intent to resell the mortgage loan;

     (3)  A person licensed to practice law in the State, not actively and principally engaged in the business of negotiating loans secured by real property, when the person renders services in the course of the person's practice as an attorney;

     (4)  A person licensed as a real estate broker or salesperson in the State, not actively engaged in the business of negotiating loans secured by real property, when the person renders services in the course of the person's practice as a real estate broker or salesperson;

     (5)  An institutional investor negotiating, entering into, or performing under a loan purchase agreement for its portfolio, for subsequent resale to other institutional investors, or for placement of the mortgages into pools or packaging them into mortgage-backed securities.  As used in this paragraph, "loan purchase agreement" means an agreement or arrangement under which a bank, savings and loan, credit union, financial services loan company, or other financial institution registered to do business in the State of Hawaii agrees to sell mortgage loans or obtain funding therefor, with or without the transfer of servicing rights, to an institutional investor;

     (6)  Foreign lender as defined in section 207-11; and

     (7)  A person licensed under chapter 467 as a real estate broker or salesperson selling time share interests on behalf of a time share plan developer that is licensed as a mortgage broker under this chapter; provided that:

         (A)  The acts or conduct of a developer's authorized representative shall be deemed to be the acts or conduct of the developer for the purposes of section 454-4; and

         (B)  If the person engages in acts or conduct prohibited under section 454-4(a), the acts or conduct shall constitute grounds for disciplinary action under section 467-14."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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