HOUSE OF REPRESENTATIVES

H.B. NO.

866

TWENTY-EIGHTH LEGISLATURE, 2015

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to the secure and fair enforcement for mortgage licensing act.

 

 

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

 


     SECTION 1.  The legislature finds that seller financing is a useful tool in the credit market.  It expands the pool of potential buyers for a seller and gives buyers an opportunity to make a purchase that would otherwise be out of reach, particularly in situations where a person is unable to qualify for a traditional mortgage loan.

     The purpose of this Act is to establish a mortgage license exemption for sellers of real property who offer or negotiate terms of a mortgage loan secured by the seller's own real property.

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

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

(1)  An exempt registered mortgage loan originator when acting for an insured depository institution or an institution regulated by the Farm Credit Administration;

     (2)  A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client unless the attorney is compensated by a lender, a mortgage loan originator company, or other mortgage loan originator or by an agent of a lender, mortgage loan originator company, or other mortgage loan originator;

     (3)  A person or entity that only performs real estate brokerage activities and is licensed or registered by the State unless the person or entity is compensated by a lender, a mortgage loan originator company, or other mortgage loan originator or by an agent of the lender, mortgage loan originator company, or other mortgage loan originator;

     (4)  A person or entity solely involved in extensions of credit relating to timeshare plans, as the term is defined in title 11 United States Code section 101(53D);

     (5)  An exempt sponsoring mortgage loan originator company as defined by this chapter except as otherwise provided by this chapter;

     (6)  An insured depository institution;

     (7)  An institution regulated by the Farm Credit Administration;

     (8)  Employees of government agencies or of housing finance agencies who act as mortgage loan originators; [or]

     (9)  A mortgage servicer company that is exempt from chapter 454M, pursuant to section 454M-3[.]; or

    (10)  A seller of real property who offers or negotiates terms of a mortgage loan secured by the seller's own real property; provided that the seller does not engage in more than three mortgage loans in one calendar year."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Secure and Fair Enforcement for Mortgage Licensing Act; Seller Exemption

 

Description:

Establishes a mortgage license exemption for sellers of real property who offer or negotiate terms of a mortgage loan secured by the seller's own real property; provided that the seller does not engage in more than three mortgage loans in one calendar year.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.