What is a Hawaii Mortgage Servicer Bond?
Effective June 1, 2015, the government in Hawaii revised its mortgage servicer licensing law to espouse some wide-ranging compliance requirements for licensed mortgage servicers. While the extent of the licensing responsibility is not impinged by the modifications, the modified regulation demands authorized servicers conducting operations in Hawaii to conform with loss mitigation requisites, servicing fee limitations, and other substantial compliance duties. While significant changes are being implemented, the Mortgage Servicer Bond continues to exist for the protection of consumers and the state.
The Hawaii Mortgage Servicer Bond is an unassailable warranty that mortgage servicers will 1) justly and truthfully look after any money handled for a borrower; 2) will act with levelheaded ability, concern, suitability, speed, and thoroughness; 3) make it known to the commissioner through the servicer’s license application a comprehensive, up-to-date timetable of the costs and fees it will charge to borrowers for its servicing-related activities; 4) will file an annual report in a manner that is acceptable to the director explaining in detail all of the servicer’s activities in the State.
Why do you need a Hawaii Mortgage Servicer Bond?
You need the Hawaii Mortgage Servicer Bond because your enterprise is vital to you. The bond is a necessity to you as you consider your profession as important and that you needed a respectable calling. Having this bond prods existing clients and prospective patrons to look up to you as a trustworthy mortgage servicer doing business with integrity and fulfilling business commitments with a sense of decorum.
More details about the Hawaii Mortgage Servicer Bond
Before getting bonded, you are required to observe the following new loss mitigation requisites:
- When achievable, pursue a loan adjustment;
- Send out a written response to a borrower’s application for loss mitigation, within ten business days;
- Complete an assessment of a borrower’s qualification and suitability for a requested loss mitigation opportunity within 30 days of obtaining all necessary documents;
- Provide delinquent borrowers a list of government-approved housing counselors in the borrower’s geographic area;
- Establish and maintain a process through which borrowers can bring disputes to a supervisory level, where a distinct appraisal of the borrower’s qualification for loss mitigation can be carried out; and
- Avoid “dual-tracking” borrowers by resorting to foreclosure, or referring a borrower to foreclosure, if the borrower has requested or is being considered for a loss mitigation option, or is on a trial or permanent loan modification and has not avoided payment.
What is the cost of a Hawaii Mortgage Servicer Bond?
The Hawaii Mortgage Servicer Bond premium payments are very much dependent on your financial credit report and reputation as an individual or as a business owner. Eligible candidates with substantial financial documentation, outstanding business performance, and a commendable reputation within the community can expect to pay a lesser premium than those who have a dodgy credit record.
How do I get a Hawaii Mortgage Servicer Bond?
Getting the Hawaii Mortgage Servicer Bond is effortless. Choose a reliable surety company that you know can serve your specific needs, can address your concerns without delay, and can respond to whatever challenges you will encounter in the process. Call them ASAP! An experienced surety professional can definitely provide you the answers to concerns you have in the operation of your business.