 Caron
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Joined: 19 Jul 2005
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Location: florida
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 Posted: Mon Feb 27, 2006 2:20 am Post subject: Customers to benefit from new Broker Laws in Hawaii |
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With record developments in the home-buying and refinancing sectors, the Hawaii mortgage industry is looking to implement new rules for mortgage brokers. In order to protect customers from unscrupulous mortgage solicitors, a bill has been passed through the Senate. As stated in the bill, the Division of Financial institutions will be controlling the activities of mortgage brokers and solicitors.
In order to become a mortgage solicitor, every applicant has to pay an administrative fee and a state fee of $50. The new laws also require brokers to undergo a test before they can start off their activities. They will be responsible for the conduct of their solicitors and loan originators. The state also intends to tighten the licensing standards for brokers.
Under the new broker laws, there will be no financial requirement other than a modest bond. Brokers will not require any training on ethics in the business. They may also do without any technical expertise gained through formal training. The Professional and Vocational Licensing Division, State Department of Commerce and Consumer Affairs will regulate industry operations along with the Division of Financial Institutions. The new rules will ensure consumer protection against abusive lending practices.
The Hawaii Association of Mortgage Brokers has however opposed the changes in the broker laws. Others in the industry are also against the new laws, as they believe that there have been few complaints from the transactions handled by brokers in the industry. |
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