Home > Flashcards > Print Preview
The flashcards below were created by user
on FreezingBlue Flashcards. What would you like to do?
Communication should not be used to steer consumers to higher risk or higher cost products when they may qualify for other products
- Info to consumers should clearly explain risk of:
- -Payment shock
- -prepayment penalties
- -balloon payments
- -cost of reduced documentation loans
- -lack of escrow for taxes & insurance
If borrower is in default the lender should arrange a prudent workout arrangement w/ borrower that benefit both parties long-term.
- MLO MLRF initial & renewal fees
- $200 / $100
MLRF fees for initial & renewal for branch
$250 / $100
- MLRF fees for initial & renewal for MLOC
- $300 / $200
comes with a late fee
$25 per day
Reinstatement dates Jan 1 - Feb 28
Change of control fee would cost $500 to apply & commissioner decides to approve
Commissioner may charge you an investigation fee of $40 each hour. Not including travel, per diem & other expenses.
- Prelicensing & renewal fees for MLOC
- $900 / $600
Prelicensing & renewal for MLO
$500 / $300
- Prelicensing & renewal for branch
- $250 / $100
Regulation of licenses moved from the DCCA's professional & vocational licensing division to the DFI. DFI regulates state-chartered banks or state-licensed financial institutions
DCCA promoting a strong & healthy business environment while protecting community from unfair & deceptive practices. Made up of 12 divisions.
Director is in charge of the DCCA
Commissioner is in charge of the DFI
The SAFE Act amends chapter 454 of the HRS
DFI purpose is to ensure the safety & soundness of HI financial institutions & maintain public confidence in these institutions through chartering & licensing, regulatory approval, examinations & supervision.
DFI has 2 branches
-Examination branch - On-site examinations
-Process apps to allow financial institution to conduct various types of activities
-Process initial & renewal license apps
-Respond to incuiries, request & consumer complaints
-Regular off-site financial stmt & opps reviews for financial institutions
The COMPLIANCE RESOLUTION FUND is within the state Treasury that administered by the DCCA director. All fees, fines & charges collected by the DFI/commissioner are deposited into this fund to pay for the operations of the department.
All enforcement-related hearings are closed to the public
Commissioner is required to report violations regularly to the NMLS
Violating confidentiality laws is guilty of a misdemeanor punishable under HRS 706-663: may be sentenced for period not to exceed 1 year. HRS 706-640 a fine not to exceed $2k or pay any higher amount equal to double the monetary gain derived from the offense by defendant or any higher or lower amount authorized by statute.
NMLS info or material relating to employement history of & publicly adjucated disciplinary & enforcement actions against LOs that are included in NMLS is exempt from confidentiality laws.
SAFE Act 454F
Code of financial institutions HRS chptr 412
Administrative procedures laws chptr 91
Mortgage servicer laws 454M
Statement on subprime mortgage lending
MLOC applicant other than a person must also register with Business Registration Division of the DCCA to do business in HI before license is given.
CBC to control persons to determine or verify info in ea. state where person has conducted MLO activities. Authorization must include consent to provide additional fingerprints to law enforcement or regulatory bodies in other states.
- Prelicensing education hour breakdown
- 3 federal
- 3 ethics
- 2 lending nontraditional products
- 12 elective
CE hour breakdown:
2 lending nontraditional mortgage products
After the 4 failure to pass an exam you must wait 6 months. Between each exam taken and failed there's a 30 day wait.
-address to new place
-Commissioner may request more
- Intent to close:
- -Notice given 30 days prior to closing
- -Commissioner may request more
Amendments are $50 for each change:
MLRF fees are refundable upon denial of a license renewal by commissioner
Aggreived person may recover by order, an amount not more than $25k per transaction including court cost & fees, resonable attorney fees as deemed by court, for damages sustained by the fraud of licensee.
Licensee must provide the books & records to their respective operations to the commissioner & he can question individuals subject to the Act concerning their business
-Info lists & data concerning transaction
-Other info deemed necessary
Contested case - a proceeding in which the legal rights, duties, or priviledges of specific parties are required by law to be determined after an opportunity for agency hearing, held by the DFI.
A contested hearing consists of:
-Date, time, place & nature of hearing
-legal authority under which the hearings to be held
-Particular sections of the statutes & rules involved
-stmt of the issues & facts
A written hearing notice involved in a contested hearing is to be given at least 15 days before the hearing & delivered by registered or certified mail. If service is not made then may be made by publication at least once in each of the 2 successive weeks in newspaper of general circulation at least 15 days prior to date of hearing
- Contested hearing records:
- -All pleadings motions & intermediate rulings
- -Evidence received or considered
- -offers of proof & rulings
- -proposed findings & exceptions
- -report of the officer who presided at the hearing
- -Staff memoranda
- No matters outside the hearing record will be considered by agency in making its decision
Mediation prior to hearing. Period my not exceed 30 days from date the case is referred unless extended by agency. If no one can agree to a mediator 10 days after referral then the agency will pick
Aggreived licensee may issue a request for contested case hearing within 60 days of the date they were refused or denied license
Appeal for judicial review of denial may only be made based on the final order from the contested case hearing
Trial de novo - trial held by higher court where all facts & law tried in the lower court are reconsidered as if no prior lower court trial had been held
Person aggreived - includes an agency that is a party to a contested case proceeding before that agency or another agency.
Preceedings for review must be instituted in the circuit court within 30 days after the preliminary ruling or within 30 days after service of the certified copy of final decision & order of agency, except where a statute provides for a direct appeal to the intermediate appellate court. Then that must be transmitted within 20 days. The review is conducted by the appropriate court without a jury
Hawaii Hurricane Relief Fund - DCCA board of Directors, insurance commissioner & others
Commissioner may examine the HI hurricane relief fund once every 3 years or as frequently as the commissioner deems necessary. The Fund pays for examination. He will examine annual stmts to determine the Funds fiscal soundness.
HHRF has an advisory committee that contains:
-No less than 1 meteorologist w/ knowledge of the history, trends, & nature of windstorms in the Pacific Ocean.
-No less than 1 member of the AAA American Academy or Actuaries
-No less than 1 structual engineer licensed to practice in HI & knowledgable about local community bldg codes
- HHRF must adopt a plan of operation including maual of rules & rates.
- -Establishes procedures for performance of all powers & duties of the fund
- -Proceedures for providing notice to all persons w/ interests insurable ny the Fund in HI
Loss reduction plan for hurricane peril must include standards for new residential & commercial structures as well as seperate standards for existing structures.
- Fund cannot deny coverage if:
- -Property already has underlying property insurance policy
- -Covered by a companion policy
Policies issued are limited in the coverage provided
1-4 units residential - limited to an aggregate of
$750k per risk
-Commercial, business, industrial - limited to an aggregate of $500k per risk
- HHRF deductables for residential, greater of the following:
- -$1k or 1% of the insured value or
- -$2k or 2% of the insured value
HHRF business deductables:
-$5k or 5% of insured value or
-Amount equivalent to all other perils deductable of the company policy
- HHRF accumilates $500Mil in funds & commitments:
- -Control or freeze rates
- -Continue accumilating premiums from policies of hurricane property insurance & special mtg recording fee, net of any reinsurance payments, operating expenses & funds necessary for the development of a loss reduction plan
If HHRF falls below $400Mil:
-Establish rates with approval from Insurance Commissioner to bring balance back up to $500Mil
-Director of Finance will also seek to arrange additional commitments.
HHRF is exempt from all taxes & fees levied by the state of Hawaii on other insurers.
Any applicant or policy holder may appeal a decision of the HHRFund if they are adversely affected. Appeal must be made to the Fund's board within 30 days of the decision.
- Established condo project:
- -90% of the units have been conveyed to unit purchasers
- -100% complete
- -Not subject to additional phasing or annexation
- -Control of HOA been turned over to unit owners
New condo project:
-less than 90% units have been conveyed
-not fully completed
-Subject to additional phasing
- 2-4 unit condo w/ additional requirments:
- -No single entity may own more than 1 unit within project
- -100% complete