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THE SENATE |
S.B. NO. |
2254 |
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TWENTY-FIFTH LEGISLATURE, 2010 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to mortgage loan originators.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 454F-2, Hawaii Revised Statutes, is amended to read as follows:
"[[]§454F-2[]] Exemptions.
This chapter shall not apply to the following:
(1) A registered mortgage loan originator, when acting for an insured depository institution, a subsidiary of an insured depository institution regulated by a federal banking agency, or an institution regulated by the Farm Credit Administration;
(2) Any individual who offers or negotiates terms of a residential mortgage loan with, or on behalf of, an immediate family member of the individual;
(3) Any individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual's residence;
(4) 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 broker, or other mortgage loan originator or by an agent of a lender, mortgage broker, or other mortgage loan originator;
(5) An individual engaging solely in loan processor or underwriter activities; provided that an individual, including an independent contractor, who performs the services of a loan processor or underwriter shall not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a mortgage loan originator, and any loan processor or underwriter, including an independent contractor, who advertises that the individual can or will perform any of the activities of a mortgage loan originator or engages in the activities of a mortgage loan originator shall not be exempt under this chapter and shall obtain and maintain a license under this chapter and a valid unique identifier issued by the Nationwide Mortgage Licensing System;
(6) 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 broker, or other
mortgage loan originator or by an agent of the lender, mortgage broker, or
other mortgage loan originator; [or]
(7) A person or entity solely involved in extensions
of credit relating to timeshare plans, as the term is defined in Section
101(53D) of Title 11, United States Code[.]; or
(8) A nonprofit organization that is recognized as tax exempt under section 501 (with respect to exemption from tax on corporations, certain trusts, etc.) of the Internal Revenue Code, and whose primary activity is construction, remodeling, or rehabilitation of homes for use by low-income families; provided that:
(A) The nonprofit organization makes no-profit mortgage loans to low-income families; and
(B) No fees accrue directly to the nonprofit organization from the no-profit mortgage loans in subparagraph (A)."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Mortgage Loan Originators; Nonprofit Organizations; Exemption
Description:
Exempts certain nonprofit organizations from chapter 454F, Hawaii Revised Statutes, relating to mortgage loan originators.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.