HRS 0454-0001 ANNOTATIONS

Section 454-8 must be interpreted to invalidate only those contracts into which unlicensed mortgage brokers enter in their capacity as mortgage brokers within the meaning of this section. 96 H. 289, 30 P.3d 895.

The broad language of §454-8, which expressly invalidates "any contract entered into by any person with any unlicensed mortgage broker", read in conjunction with the definition of "mortgage broker" as set forth in this section, compels the conclusion that a note and mortgage designating the broker as the creditor as a result of the broker's brokering activities falls within the proscription of this chapter. 96 H. 289, 30 P.3d 895.

The phrase "on behalf of a borrower" in the definition of "mortgage broker", means "in the interest of a borrower" or "for the benefit of a borrower". 96 H. 289, 30 P.3d 895.

Where a partnership was a mortgage broker within the meaning of this section, and the partnership-broker was unlicensed, the promissory note and mortgage procured by the partnership-broker were void and unenforceable pursuant to §454-8, and a subsequent assignee also could not enforce the contracts. 96 H. 289, 30 P.3d 895.