State Regulators Settle With Hundreds Of Mortgage Loan Originators

The Division of Financial Institutions, Department of Commerce and Consumer Affairs and financial regulatory agencies from 42 other states reached with 441 mortgage loan originator nationwide, including 15 with Hawaii licenses.

These mortgage loan originator deceptively claimed they have completed the annual continuing education and pre-education requirements as required under state and federal law.

Through these settlements, the mortgage loan originators agreed to surrender their license for three months and pay a fine of $1,000 for each state they hold a license in. They will also take continuing education beyond Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) requirements.

“We want to assure consumers who used these mortgage loan originators that their mortgages are valid and in force, as the violations did not affect the integrity of the mortgages,” said Commissioner Ikeda.

The irregularity in the originators’ education activity was discovered through the SAFE Act mandate’s online courses authentication tool BioSig-ID.

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