Hawaii Amends Statutes Regarding Examinations and Licensing Fees
by: Nicole Legere, Esq.
The state of Hawaii recently amended Chapter 454M of the Hawaii revised statutes by adding provisions which authorize the Commissioner of Financial Institutions to conduct exams and investigations. Additional amendments were made to adjust fees for mortgage servicer licensees to use the NMLS licensing system. These amendments are effective immediately.
This new amendment gives the Commissioner of Financial Institutions the authority to “access, receive, and use any books, accounts, records, files, documents, or evidence that the commissioner deems relevant to the inquiry or investigation…” This access shall be granted regardless of “location, possession, control or custody” of any needed information. Furthermore, the amendment allows for licensees, as well as other persons subject to Chapter 454M, to be investigated or examined by the Commissioner of Financial Institutions. This includes ordering the attendance of individuals, whose testimony may be required, regarding any subject matter of any examination or investigation to be examined under oath.
During the investigation or examination, the Commissioner of Financial Institutions may control access to the documents and records involved by taking possession of the material, and placing an individual in exclusive charge of it. The documents and records may not be removed, unless under court order or given consent, but the licensee or owner shall have access to them as necessary to conduct “ordinary business affairs.”
The Commissioner of Financial Institutions is also authorized to enter into relationships with third parties in order to carry out the functions of the investigation or examination. For example, the Commissioner may “retain accountants or other professionals as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations.” The Commissioner may charge a fee of sixty dollars per hour, or another amount as established by the Commissioner in accordance with Chapter 91, which is based on the cost per hour of the investigation or examination.
The NMLS fees for new applicants, and those renewing their NMLS licenses, were also changed as a result of these new amendments. A first time applicant is now required to pay an application fee of $675 dollars, which is an increase from the previous application fee of $500 dollars. An applicant for renewal must pay a fee of $425 dollars, at least four weeks prior to the renewal period, which is an increase from the previous renewal fee of $250 dollars.
These amendments can be read in full on AllRegs at: http://www.allregs.com/ao/main.aspx?did2=d21045b982be4672a1e4cb4458f3485a
About the Author:
Nicole Legere, Esq. is Assistant Vice President and Senior Counsel at Bankers Advisory, Inc. She is a graduate of the University of Massachusetts and earned her Juris Doctor at Roger Williams School of Law. She is admitted to the bar in Massachusetts and New York. She can be reached at Nicole@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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