HOUSE OF REPRESENTATIVES	H.B. NO.	1241
TWENTY-NINTH LEGISLATURE, 2017		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO MORTGAGE SERVICERS.

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

     SECTION 1.  Section 454M-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The commissioner may approve a license or license renewal application upon receipt of a complete application; provided that an applicant for licensure shall file an application on a form prescribed by NMLS or by the commissioner and shall pay an application fee of $675[.]; provided further that nonprofit organizations registered with NMLS shall pay an application fee of $        .  Each license shall expire on December 31 of each calendar year unless the license is renewed.  A licensee may apply for license renewal by filing a renewal statement on a form prescribed by NMLS or by the commissioner and paying a renewal fee of $600, at least four weeks prior to December 31[.]; provided that nonprofit organizations shall pay a renewal fee of $        . The minimum standards for license renewal shall include the following:

     (1)  The licensee continues to meet the minimum standards for licensure established pursuant to this section;

     (2)  The licensee has paid all required fees for renewal of the license; and

     (3)  The licensee is registered with the business registration division of the department of commerce and consumer affairs.

All fees paid pursuant to this section, including fees paid in connection with an application, shall be nonrefundable.  No fee paid pursuant to this section shall be prorated if the license is surrendered, revoked, or suspended prior to the expiration of the period for which it was approved."

     SECTION 2.  The commissioner of financial institutions of the department of commerce and consumer affairs shall conduct an analysis of chapter 454M, Hawaii Revised Statutes, specifically with regard to its application and impact on nonprofit organizations.  The commissioner shall submit a report on any issues regarding the impact and application of this chapter on nonprofit organizations and any other relevant findings as determined by the commissioner.  The report shall be submitted to the legislature no later than twenty days prior to the convening of the regular session of 2019 and shall include any recommendations by the commissioner, including any proposed legislation.

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

     SECTION 4.  This Act shall take effect on July 1, 2112, and shall be repealed on June 30, 2019, and section 454M-4, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the approval of this Act.

Report Title:

Mortgage Loan Servicers; Nonprofit Organizations; Exemption

Description:

Reduces mortgage loan servicer licensing fees and relicensing fees for nonprofit organizations.  Exempts nonprofit organizations and their employees, who are already exempt from licensure and registration as mortgage loan originators, from regulation as mortgage loan servicers.  Requires a report to the Legislature.  (HB1241 HD1)

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