FAQ – MLO

MLO (Mortgage Loan Originator) means an individual who for compensation or gain or in the expectation of compensation or gain:

(1) Takes a residential mortgage loan application; or

(2) Offers or negotiates terms of a residential mortgage loan.

“Taking a residential mortgage loan application” means receipt of a request or of a response to a solicitation of an offer from a borrower, either directly or indirectly, for the purpose of deciding whether or not to extend an offer of a loan to the borrower.  Taking a residential mortgage loan application does not include mere physical handling or transmission of a form.”

Yes.  Chapter 454F requires that persons who take, offer, or negotiate terms of a residential mortgage loan be licensed.  A residential mortgage loan is defined as:

[A]ny loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling as defined in Section 103(v) of the Truth in Lending Act, 15 United States Code Section 1602 or residential real estate.

Regulation Z, which implements the Truth in Lending Act, defines “dwelling” to mean “a residential structure that contains one to four units, whether or not that structure is attached to real property.  The term includes an individual condominium unit, cooperative unit, mobile home, and trailer, if it is used as a residence.”  The Department of Housing and Urban Development has interpreted “mobile home” to include a manufactured home, as defined in the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. § 5402(6)).

An individual who plans to work as an MLO for his or her own mortgage broker business must obtain the sole proprietor license which includes (1) an individual MLO license and (2) an MLOC license for the business, whether it is a sole proprietorship or some other form of organization, such as a partnership, limited liability company, or a corporation.  This is required because under the NMLS program, every individual MLO must be linked to, or “sponsored” by a company.  This requires that an individual obtain both licenses.  For purposes of NMLS, Forms MU1, MU2, and MU4 will be required.

DFI will approve the request for removal of sponsorship.  It is the MLO’s responsibility to find another sponsor.  If another sponsor is not obtained, the alternative is for that MLO to obtain a license as a sole proprietorship MLOC, which will then sponsor his or her MLO license.

No.  The only situation in which DFI may allow an MLO to be sponsored by more than one Mortgage Loan Originator Company (“MLOC”) is if only one of the MLOCs is a Hawaii-licensed MLOC.

Every MLO, MLOC, and other person in this state that conducts mortgage loan origination activities for residential mortgage loans, unless specifically exempt, shall register with the NMLS.  Upon registration, a person creates a record with the NMLS and obtains a unique identifier.

Some persons are only required to register with the NMLS, and do not need to obtain a license under HRS Chapter 454F, even if they conduct mortgage loan origination activities.  These persons do not require a Chapter 454F license because they are already adequately regulated under another law and therefore do not require further regulation by means of licensure under Chapter 454F.  These persons are either “exempt registered mortgage loan originators” (“exempt registered MLO”) or “exempt registered mortgage loan originator companies” (“exempt registered MLOC”).

(1) An exempt registered mortgage loan originator when acting for an insured depository institution or an institution regulated by the Farm Credit Administration, except as otherwise provided by this chapter;

(2) A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client unless the attorney is compensated by a lender, a mortgage loan originator company, or other mortgage loan originator or by an agent of a lender, mortgage loan originator company, or other mortgage loan originator;

(3) A person or entity that only performs real estate brokerage activities and is licensed or registered by the State unless the person or entity is compensated by a lender, a mortgage loan originator company, or other mortgage loan originator or by an agent of the lender, mortgage loan originator company, or other mortgage loan originator;

(4) A person or entity solely involved in extensions of credit relating to timeshare plans, as the term is defined in title 11 United States Code section 101(53D);

(5) An exempt sponsoring mortgage loan originator company as defined by this chapter except as otherwise provided by this chapter;

(6) An insured depository institution;

(7) An institution regulated by the Farm Credit Administration;

(8) Employees of government agencies or of housing finance agencies who act as mortgage loan originators; or

(9) A seller of real property who offers or negotiates terms of a residential mortgage loan that is financed by the seller and secured by the seller’s own real property; provided that:

• The seller is a person, estate, or trust that transacts three or fewer residential mortgage loans in one calendar year;
• The seller is not a loan originator for purposes of the loan originator qualification requirements in 12 C.F.R. section 1026.36(f) and (g);
• The seller has not constructed or acted as the construction contractor for the residence on the property in the ordinary course of the seller’s business;
• The interest rate for the loan does not exceed the State’s usury limit; provided that the exemptions from usury specified in section 478-8 shall not apply to transactions subject to this paragraph;
• The seller shall provide to the buyer the terms of the financing including:

1. A current title search including any liens against the property;
2. The interest rate;
3. Monthly principal and interest payments;
4. Any prepayment penalty;
5. Any late payment charges;
6. The payment schedule;
7. The total amount of interest that the mortgagor will pay over the term of the loan expressed as a percentage of the loan amount;
8. A calculation of projected aggregate monthly payments including principal and interest;
9. Estimated closing costs if closing costs are included in loan costs and estimated cash to close if closing costs are not included in loan costs.  For purposes of this paragraph, closing costs shall include recording fees, transfer taxes, prepaid costs such as homeowner’s insurance premiums or property taxes, and appraisal costs charged to the mortgagor;
10. The seller’s contact information including name, address, phone number, electronic mail address, and alternate contact information to the extent available; and
11. A statement that the seller will acquire a security interest in the buyer’s dwelling and that the buyer may lose the dwelling in the event of a loan default;

(10) The seller shall provide a disclaimer, to be initialed by the buyer, which states, “BUYER ACKNOWLEDGES RECEIVING FINANCING FROM THE SELLER IN THIS TRANSACTION AND GRANTING THE SELLER A MORTGAGE.  THIS CAN HAVE SERIOUS CONSEQUENCES SHOULD BUYER FAIL TO MAKE ANY PAYMENTS INCLUDING BUT NOT LIMITED TO FORECLOSURE AND THE LOSS OF BUYER’S PROPERTY.  THEREFORE, IT IS IMPORTANT THAT BUYER UNDERSTANDS ALL FINANCING TERMS AND OBLIGATIONS AND OBTAINS PROFESSIONAL EXPERT ADVICE TO THE EXTENT NECESSARY TO ENSURE BUYER IS FULLY ADVISED IN THIS MATTER.”; and

(11) A residential mortgage loan shall be recorded with the land court or bureau of conveyances as applicable.

MLOC (Mortgage Loan Originator Company) means:

(1)  An individual not exempt under HRS § 454F-2 who engages in the business of an MLO as a sole proprietorship; or

(2)  A person not exempt under HRS § 454F-2 who employs or uses the exclusive services of one or more MLOs licensed or required to be licensed under Chapter 454F.

An individual who plans to work as an MLO (Mortgage Loan Originator) for his or her own mortgage broker business must obtain the sole proprietor license which consists of  (1) an individual MLO license and (2) an MLOC license for the business, whether it is a sole proprietorship or some other form of organization, such as a partnership, limited liability company, or a corporation.  This is required because under the NMLS program, every individual MLO must be linked to, or “sponsored” by a company.  This requires that an individual obtain both licenses.  For purposes of NMLS, Forms MU1, MU2, and MU4 will be required.

Every MLO, MLOC, and other person in this state that conducts mortgage loan origination activities for residential mortgage loans, unless specifically exempt, shall register with the NMLS.  Upon registration, a person creates a record with the NMLS and obtains a unique identifier.

Some persons are only required to register with the NMLS, and do not need to obtain a license under HRS Chapter 454F, even if they conduct mortgage loan origination activities.  These persons do not require a Chapter 454F license because they are already adequately regulated under another law and therefore do not require further regulation by means of licensure under Chapter 454F.  These persons are either “exempt registered mortgage loan originators” (“exempt registered MLO”) or “exempt registered mortgage loan originator companies” (“exempt registered MLOC”).

There are currently only two categories of business that qualify for this exemption:  (1) a Hawaii-licensed nondepository financial services loan company that has employees who conduct mortgage loan origination activities and who are licensed as MLOs under Chapter 454F; and (2)  holding companies of banks or savings associations.

If, as a wholesale lender, a company is engaged either directly or indirectly in underwriting, closing, and funding residential mortgage loans, those activities will trigger a licensing requirement for both the company and the individual employees of the company engaged in any of those functions.  Wholesale lenders become subject to licensing as a MLOC due to the definition of “taking a residential mortgage loan application”, which contemplates either direct or indirect involvement in the loan origination process. To the extent that any nonexempt lender is effectively deciding whether or not to extend an offer of a loan to a borrower, even if it does so indirectly, it would be taking a residential mortgage loan application in Hawaii.

No.  When you complete (or amend) a company’s MU1 form to select Hawaii as a checked jurisdiction, you will also be able to indicate on the MU1 form which trade names (either new or existing) the company intends to use in Hawaii.  You are not limited as to the number of trade names you wish to register and use in Hawaii.  As long as those trade names are properly registered with the Business Registration Division of the State of Hawaii’s Department of Commerce and Consumer Affairs, they may be used by the company from any of its locations, including both its Hawaii and non-Hawaii branches.  Be aware, however, that while the company’s non-Hawaii branches will not require a Hawaii branch license (i.e. Form MU3), any individual at a non-Hawaii branch who originates a loan that is a residential mortgage loan subject to Chapter 454F will need to be licensed as a Hawaii mortgage loan originator.

An applicant need only check the “forced” box if the applicant has been advised by either the Commissioner of Financial Institutions or the Business Registration Division of the State of Hawaii’s Department of Commerce and Consumer Affairs that the applicant company will not be permitted to do business in Hawaii under its true legal name for any reason and that the company will therefore be required to do business in Hawaii under a “dba” or trade name.  Only in that instance should the “forced” box be checked.  In all other cases, you may leave the “forced” box unchecked when indicating which trade name(s) the company proposes to use in Hawaii.

No.  DFI currently has no restrictions by statute, rule or otherwise as to distance limitations for an MLO, such as distance from home to the main office or a branch. Consequently, under certain circumstances, a Hawaii-licensed MLO may reside on one island and be attached to a branch on another island in the State.

Yes.

No.

No.  There is no requirement in the statute that MLOs work out of a branch office, provided that the MLO does not work out of an office that holds itself out to the public as being an office of an MLOC when that is not the case.

Generally no, because a manager must be physically located in the branch during the branch’s normal business hours.

Yes.  An MLOC shall give the Commissioner notice of its intent to close a branch office in Hawaii at least thirty days prior to the closing.  The notice shall:  (1) state the intended date of closing; and (2) specify the reasons for the closing.

Recognizing that the NMLS only allows companies to file one Form MU1, in situations where one Form MU1 is already filed for established mortgage loan originator companies with corporate offices outside of Hawaii, these companies will be required to establish a Hawaii “principal place of business branch” that will be licensed as a branch.  This allows these companies to meet the brick and mortar requirement for Hawaii, which mandates that all Hawaii MLOCs maintain a principal place of business in this state.

The following documents must be filed with NMLS:

a.  Form MU1 for the out of state corporate headquarters, showing Hawaii as a “checked jurisdiction” to apply for a Hawaii license;

b.  Form MU2 for designated control persons;

c.  Form MU4 application for a Hawaii mortgage loan originator license for at least one person listed as a “Qualifying Individual” with respect to the company’s Hawaii mortgage loan origination activities;

d.  Form MU3 for the “Hawaii Principal Place of Business”;

e.  Form MU2 for the on-site “Manager” of the Hawaii Principal Place of Business. (Note that the Manager of the Hawaii Principal Place of Business may, but need not be the same person listed as a “Qualifying Individual” on the Form MU1 who is licensed as a Hawaii mortgage loan originator); and

f.  Form MU4 application for a Hawaii mortgage loan originator license for the Manager listed in the Form MU3 Hawaii Principal Place of Business application.

Yes.  Each company will be required to designate on Form MU1 an individual to serve as the “Qualifying Individual” in charge of the mortgage loan origination activities or in charge of the oversight of licensed MLOs.  The “Qualifying Individual” must be licensed as a Hawaii MLO.

No, even if the MLOCs are affiliated.

No.  There is no residency requirement for the Qualifying Individual. That individual need only fulfill the requirements to be approved for a Hawaii MLO license. The Qualifying Individual may, but need not be, the manager of the company’s principal place of business in Hawaii.

Yes.  If a licensed mortgage loan originator proposes to designate his or her personal residence as either the principal place of business in Hawaii or a branch office of the company, it is DFI’s expectation that a licensee’s place(s) of business must be open to the public during reasonable business hours so that loan applicants and other customers of the company may visit the company’s office or otherwise contact the company to submit loan applications or inquire about the status of their pending loan applications, provide timely supplementary documentation as may be required in connection with a pending application, and conduct other business with the company without undue inconvenience.  Further, the office must be open for any examinations that may be scheduled by DFI.  Be aware that the address of any office of the company, including a personal residence, will be publicly available information.

Yes.  With regard to any proposed space-sharing office arrangements, we remind any applicant seeking to share premises with other businesses that pursuant to HRS § 454F-17(8), a licensee’s business must at all times be conducted in compliance with all applicable state and federal laws.  That includes applicable state and federal privacy laws regarding consumers’ financial information.  At a minimum therefore, we would expect that any shared space arrangements would include provisions to adequately safeguard the confidentiality of information contained in consumer loan account records.  In addition, in a shared space arrangement, we would expect there to be adequate signage and separation of office space to ensure that consumers would not likely be confused about the identity of the particular company at that location with which they are doing business.

A virtual office contemplates that a live person will not be available to meet consumers and respond to any consumer questions in a face to face meeting.  As such, a virtual office does not meet the legal requirements of a branch office.

At this time, only an MLOC is required to file mortgage call reports provided that the reports filed cover the activities of all the MLOs whom the MLOC sponsors.  Call reports are due quarterly within 45 days of the end of every calendar quarter.

Mortgage call reports are filed with NMLS.  NMLS launched this functionality in April, 2011 for licensees to report data for the first quarter of 2011.

DFI will approve the request for removal of sponsorship.  It is the MLO’s responsibility to find another sponsor.  If another sponsor is not obtained, the alternative is for that MLO to obtain a license as a sole proprietorship MLOC, which will then sponsor his or her MLO license.

No.  DFI may allow an MLO to be sponsored by more than one MLOC is if only one of the MLOCs is a Hawaii-licensed MLOC.

Yes.  An MLOC shall not relocate any office in Hawaii without the prior written approval of the Commissioner.  An application to relocate an office shall set forth the reasons for the relocation, the street address of the proposed relocated office, and any other information that may be required by the Commissioner.  After the application has been approved, the MLOC will amend the Form MU3 in NMLS and pay the fee as required by HRS § 454F-22 and any NMLS fee.

No.  Certain lenders previously claimed a foreign lender exemption in Hawaii prior to January 1, 2011, and as such, were not required to be licensed as a mortgage broker under the now repealed law on Mortgage Brokers and Solicitors, HRS Chapter 454.  That exemption, at HRS §454-2 (6), HRS, was available to a “Foreign lender as defined in section 207-11…”, which states, in part, “‘Foreign lender’ means…(C) a lender approved by the Secretary of the United States Department of Housing and Urban Development for participation in any mortgage insurance program under the National Housing Act…”.

HRS Chapter 454, was repealed on January 1, 2011, and with its repeal, the foreign lender exemption under that law ceased to exist. There is no comparable exemption for foreign lenders under Chapter 454F.

While HRS Chapter 207 has not itself been repealed, a review of HRS §207-12 will confirm that there is no exemption in that section from the otherwise applicable licensing requirements under Chapter 454F.  The exemption that foreign lenders previously invoked was not found in HRS Chapter 207, but was located at HRS §454-2(6) of the now repealed law on Mortgage Brokers and Solicitors.

From January 1, 2011, a person, unless specifically exempted by Chapter 454F, HRS, shall not engage in the business of an MLO or MLOC with respect to a residential mortgage loan on any dwelling located in this state without first obtaining and maintaining annually, a license under Chapter 454F.

In addition to the Mortgage Loan Recovery Fund fees, nonrefundable fees are required and are outlined in HRS § 454F-22.  Additionally, NMLS charges fees for the various license applications.

Most fees, including Mortgage Loan Recovery Fund fees, are payable through the NMLS.  Fees not eligible for payment through the NMLS shall be payable to DFI.  At this time, the $35 fee for each control person, executive officer, director, general partner, and managing member of an MLOC is not payable through the NMLS and must be paid directly to DFI.

The purpose of the Mortgage Loan Recovery Fund is to allow for recovery of money, in an amount not more than $25,000 per transaction, for any person aggrieved by an act, representation, transaction, or conduct of a licensee involving fraud, misrepresentation, or deceit.  This fund is in lieu of a bonding requirement for licensees.  Licensees pay both an initial fee upon licensure, and an annual fee to fund the Mortgage Loan Recovery Fund.

No.  Under Chapter 454F, bonding is no longer required.  Instead, licensees will contribute, through annual fees, to fund the Mortgage Loan Recovery Fund.

All licensees are required to pay the Mortgage Loan Recovery Fund fee.  An initial amount is due upon licensure, and an annual fee is due upon renewal.  The current fees are:

• Principal office of a MLOC:  $300 upon initial licensure and $200 upon license renewal
• Branch office of a MLOC:  $250 upon initial licensure and $100 upon license renewal
• MLO:  $200 upon initial licensure and $100 upon license renewal.

Every MLO, MLOC, and other person in this state that conducts mortgage loan origination activities for residential mortgage loans, unless specifically exempt, shall register with the NMLS.  Upon registration, a person creates a record with the NMLS and obtains a unique identifier.

Some persons are only required to register with the NMLS, and do not need to obtain a license under HRS Chapter 454F, even if they conduct mortgage loan origination activities.  These persons do not require a Chapter 454F license because they are already adequately regulated under another law and therefore do not require further regulation by means of licensure under Chapter 454F.  These persons are either “exempt registered mortgage loan originators” (“exempt registered MLO”) or “exempt registered mortgage loan originator companies” (“exempt registered MLOC”).

An exempt registered MLO is an MLO who is an EMPLOYEE of (1) an insured depository institution; or (2) an institution that is regulated by the Farm Credit Administration.  These employees must be registered with the NMLS and must maintain a unique identifier to keep their exempt status.

There are currently only two categories of business that qualify for this exemption:  (1) a Hawaii-licensed nondepository financial services loan company that has employees who conduct mortgage loan origination activities and who are licensed as MLOs under Chapter 454F; and (2)  holding companies of banks or savings associations.

(1)  An exempt registered MLO when acting for an insured depository institution, or an institution regulated by the Farm Credit Administration;

(2)  Any individual who offers or negotiates terms of a residential mortgage loan with, or on behalf of, an immediate family member of the individual;

(3)  Any individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual’s residence;

(4)  A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client unless the attorney is compensated by a lender, an MLOC or other MLO or by an agent of a lender, MLOC, or other MLO;

(5)  A person or entity that only performs real estate brokerage activities and is licensed or registered by the State unless the person or entity is compensated by a lender, a mortgage  loan originator company, or other MLO or by an agent of the lender, MLOC or other MLO;

(6)  A person or entity solely involved in extensions of credit relating to timeshare plans, as the term is defined in Section 101(53D) of Title 11, United States Code;

(7)  An exempt registered MLOC as defined by Chapter 454F; or

(8)  An insured depository institution.

No.  Chapter 454F only applies to loans on residential real estate.

“Mortgage loan originator” means an individual who for compensation or gain or in the expectation of compensation or gain:

(1)  Takes a residential mortgage loan application; or

(2)  Offers or negotiates terms of a residential mortgage loan.

A person that is not exempt under Chapter 454F, will not be able to originate residential mortgage loans in Hawaii without the requisite license(s) beginning January 1, 2011.

In order to be issued a license, an applicant must be able to show, and the Commissioner must find the following:

a) No former revocation of license.  An applicant cannot be licensed if the individual or, in the case of an applicant that is not an individual, each of the applicant’s control persons, executive officers, directors, general partners, and managing members ever had an MLO or MLOC license revoked in another jurisdiction.  (A subsequent formal vacation of a revocation will not be deemed a revocation).

b) No conviction of (1) any felony in past seven years or (2) any felony at any time prior to the application if it involves an act of fraud, dishonesty, breach of trust, or money laundering (the pardon of a conviction is not a conviction) for the individual or, if the applicant is not an individual, each of the applicant’s control persons, executive officers, directors, general partners, and managing members.

c) Financial responsibility, character, general fitness of the individual or, if the applicant is not an individual,each of a company’s control persons, executive officers, directors, general partners, and managing members. This determination may be based on the following:

· No current outstanding judgments (except judgments solely from medical expenses)

· No current outstanding tax liens or other government liens and filings

· No foreclosures in the past three years

· No pattern of seriously delinquent accounts in the past three years

d) No conviction of any misdemeanor involving an act of fraud, dishonesty, breach of trust, or money laundering of the individual or, if the applicant is not an individual, each of the company’s control persons, executive officers, directors, general partners, and managing members.

e) Pre-licensing education completed for individual MLOs.

f) Passing score on the national and State components of the written test for individual MLOs.

g) Mortgage Loan Recovery Fund fees are paid upon licensure.

Authorization given to Commissioner to conduct background checks in other states where applicant has conducted business.

Financial responsibility may be determined by a number of factors.  HRS § 454F-5(3) provides in part:

A person is not financially responsible when the person has shown a disregard in the management of the person’s financial condition.  A determination that a person has not shown financial responsibility may be based on:

(A) Current outstanding judgments, except judgments solely as a result of medical expenses;

(B) Current outstanding tax liens or other government liens and filings;

(C) Foreclosures within the past three years; and

(D) A pattern of seriously delinquent accounts within the past three years.

While DFI is bound by the language of the statute, DFI makes licensing determinations based on the totality of the circumstances, as to whether the applicant has demonstrated that he or she possesses the character, general fitness, and financial responsibility to operate honestly, fairly, and efficiently.  In evaluating applicants, DFI may expand the scope of its review to determine financial responsibility, character, and general fitness by considering the following information, in addition to the statutory criteria:

1. The applicant’s entire credit history as reflected in the credit report. The following negative factors, in addition to those cited in HRS § 454F-5 (3), may result in disapproval of the application under review:

• Personal bankruptcy within the previous year. In considering the totality of the circumstances, the fact that an applicant has been a debtor in a bankruptcy shall not be the sole basis of DFI’s determination to deny the issuance of a license.
• Bankruptcy within the previous year of any organization based on events that occurred while the relevant person was a control person.  In considering the totality of the circumstances, the fact that an applicant has been the control person of a bankrupt organization shall not be the sole basis of DFI’s determination to deny the issuance of a license.
• Outstanding judgment based upon grounds of fraud, embezzlement, misrepresentation, or deceit.
• Open collection account or account that is actively assigned to a collection agency.
• Any account that has been “charged off” within the previous 3 years and remains unpaid.

2. Responses contained in the license application.

3. Previous licensing history with any state or federal regulatory authority or other governmental entity including whether the applicant was named in any supervisory, enforcement or administrative action.

4. Other information that reflects upon an applicant’s character, general fitness, or financial responsibility.

Outstanding tax liens, judgments, collections, and charge-offs would clearly be negative factors for an applicant.  A specific payment plan to erase the debt, however, would certainly be considered.  DFI will review the details of an applicant’s entire credit history as part of the decision-making process and make a determination, based on all extenuating and mitigating circumstances, as to whether the applicant is qualified for licensure.

Yes.  Every control person, executive officer, director, general partner, and managing member of an organization must be “financially responsible” in order for the company applicant to obtain a license.

For purposes of the NMLS, control persons include “any person that (i) is a general partner or executive officer, including Chief Executive, Chief Financial Officer, Chief Operations Officer, Chief Legal Officer, Chief Credit Officer, Chief Compliance Officer, Director, and individuals occupying similar positions or performing similar functions; (ii) directly or indirectly has the right to vote 10% or more of a class of a voting security or has the power to sell or direct the sale of 10% or more of a class of voting securities; or (iii) in the case of a partnership, has the right to receive upon dissolution, or has contributed, 10% or more of the capital . . .”

20 hours. This must include 3 hours of federal law and regulations; 3 hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues; and 2 hours of training related to lending standards for the nontraditional mortgage product marketplace.  Pre-licensing education courses must be approved by the NMLS.  Please see HRS § 454F-6 and the NMLS website for more information and for procedures for completing this before licensure.

The national and state components of the written test are administered at testing centers throughout the United States.  An individual will first need to create his/her record in NMLS and then request information relating to test dates and locations.  Scheduling to take a test must be done through the NMLS website.

No.  All state SAFE compliant MLO tests are administered on behalf of the Nationwide Mortgage licensing System by third party test providers – in Hawaii these are Prometric and Pearson VUE.  At the present time the testing centers are located only on Oahu.   DFI has requested that additional test centers be located on the Neighbor Islands and continues to vigorously follow up on this issue.  We have also brought the lack of Neighbor Island test centers to the attention of the NMLS administrators in Washington, D.C.

Yes.  Under both the federal SAFE Act and Chapter 454F, you are required to obtain an MLO license, and under Chapter 454F, if you are not an exclusive agent providing your services to one mortgage loan originator company only, you must also obtain an MLOC license.

See also the General FAQs.

No, provided that you are an “individual who performs clerical or support duties” as an employee at the direction of and subject to the supervision and instruction of an MLO, or a person who is exempt from licensing as an MLO under Chapter 454F.