A new law was introduced concerning mortgage loan originators in Hawaii State. The new law is titled HB 2278-SB 2603 and replaces the present mortgage loan originator surety bond requirements implemented in 2009 with a recovery fund. The present legislation requires originators to be covered by a surety bond in a quantity calculated by the dollar amount of the loans originated. Should the loan originator be an employee or an exclusive agent of a licensee, coverage under the employer’s surety bond satisfies the requirement. HB 2278-SB 2603 requires the surety bond to provide coverage for all originators. The Commissioner of Financial Institutions is allowed to promulgate policy to adopt the bond requirement, which has not yet taken place.
Eric is the Webmaster of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.