Hawaii Enacts Provisions Regarding MLO Licensing
The state of Hawaii has recently enacted provisions regarding the temporary authority of certain individuals to engage in business as a mortgage loan originator (MLO). These provisions are effective on November 24, 2019.
Hawaii House Bill 988 implements section 106 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, P.L. 115-174, by providing a 120-day temporary authority to originate loans in Hawaii for loan originators moving from a depository institution to a non-depository institution and for state-licensed loan originators moving to Hawaii from another state.
Temporary authority will allow qualified mortgage loan originators to originate mortgage loans in Hawaii without complying with state licensing laws for 120 days. During these 120 days, the mortgage loan originator has the opportunity to complete the state-specific pre-education or continuing education, the financial responsibility review, and the criminal background review. During this transitional authority period, the MLO will be held responsible for any origination errors caused by the MLO. This supervisory oversight will protect consumers from harm caused by MLOs under transitional authority.
Zachary Pearlstein, JD, is a Regulatory Compliance Director with CLA's Mortgage Advisory Division. He joined CLA on January 1, 2014, as part of its acquisition of Bankers Advisory, Inc. Zachary oversees Mortgage Advisory's regulatory compliance team, which focuses on federal and state compliance, fair lending, and the Home Mortgage Disclosure Act (HMDA). He is a graduate of Brandeis University and earned his juris doctor at Suffolk University Law School. He is admitted to the Massachusetts Bar.
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