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Enacted in Hawaii, a new law is now in place affecting mortgage loan originators within the state. The new law which is labeled SB 1218 integrates the federal definition of a mortgage loan originator. The law also requires originators to obtain a surety bond in a quantity that would be calculated by the dollar amount of the loans originated. Should the loan originator be an employee or an exclusive agent of a licensee, the coverage under the employer’s surety bond would satisfy the bonding requirements. SB 1218 requires the surety bond to cover all of the originators. The State Governor prevented the bill, but the legislature reversed the veto and SB 1218 became law. SB 1218 was introduced on 1/27/2009 and enacted on 7/15/2009.
Comments (2)
Category: Commercial Bonds, Misc. Commerical Bonds, Surety News
Tags: bond requirements, Hawaii, legislation
The State of Hawaii should have enacted something sooner. Besides the federal mandate, and whatever the state is SUPPOSED to come up with, anyone who isn't a convicted felon can get a license. Used to be that there were no education requirements at all. I think this is great for the mortgage industry and great for Hawaii
Thanks for your input Keahi! I agree the bond requirement should have been around for years, they are behind the times when compared to the other state bond requirements.
Are you a loan originator yourself? Just curious…