The Hawaii Mortgage Servicer License Guide

Category: Uncategorized
Published: Dec 7, 2020
Hawaii mortgage servicer license

 

If you want to work as a mortgage servicer in the state of Hawaii, you will need to obtain a license from the Division of Financial Institutions (DFI) at the Commerce and Consumer Affairs Department.

A mortgage servicer is someone who collects periodic payments from borrowers under the terms of a residential mortgage loan and forwards these payments to lenders.

While the license itself is regulated by the DFI, the application must be submitted through the Nationwide Multistate Licensing System and Registry (NMLS).

Keep reading to learn how to become a mortgage servicer in Hawaii!

Meet the Hawaii Mortgage Servicer License Requirements

Prior to completing and submitting your application in NMLS, you will need to meet several licensing requirements in the state. These include the following:

Business Documents

To operate as a mortgage servicer, you will need to form a business at the state Business Registration Division (BREG).

In addition to your business formation documents, you will need to submit a number of documents with your license application. The following must be uploaded to NMLS when completing your application:

  • Certificate of good standing / Certificate of authority
  • Information about other trade name (if applicable)
  • Management chart
  • Organizational chart

On top of the above, you need to submit the following documents to the DFI directly at [email protected]. The official forms for these documents are available on the DFI website.

  • Method of doing business and a list of all customer remittance methods that will be offered
  • List of proposed physical locations
  • List of affiliations
  • Costs and fees schedule

See the original Hawaii mortgage servicer license application checklist from the NMLS for a full list of the required documentation.

Provide a Surety Bond

As part of your license application, you will also need to post a Hawaii mortgage servicer surety bond. The bond must be in the amount of $100,000.

This is not the same as the cost of getting bonded. To get bonded, you need to pay a bond premium. This premium is equal to a, usually small, percentage of the total bond amount.

Your premium depends on your financials, such as your credit score and financial statements. The better your financials are, the lower the cost of your bond. Typically, applicants with good financials get bonded at a rate between 0.5% and 5% of the total amount of their bond.

Would you like to get a free quote on your Hawaii mortgage servicer bond? Simply complete the bond form below!

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Complete the Hawaii Mortgage Servicer License Application

In order to complete and submit your license application form, you need to register in NMLS. You will then be provided access to the various application forms which include Company form (MU1) and Individual form (MU2).

License and Registration Fees

Along with your license application documents, you will need to pay a:

  • $675 mortgage servicer application fee
  • $100 NMLS initial processing fee

Upon submitting your application and fees, the DFI will review your documents. You will be notified when your mortgage servicer license is issued.

Renewing Your Hawaii Mortgage Servicer License

Mortgage servicer licenses in Hawaii expire yearly on December 31.

To renew your license on time, you need to submit a renewal application as well as pay a $425 renewal fee and a $100 NMLS processing fee. Your renewal application must be submitted no later than four weeks prior to December 31.

You are also required to submit a list of documents with each renewal application. You can find a list of the required renewal documents on the DFI website.

If you have any questions about getting a mortgage servicer license in Hawaii or obtaining a mortgage servicer bond, get in touch with us at 877.514.5146!

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.