This chapter shall not apply to the following:

(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;

Terms Used In Hawaii Revised Statutes 454F-2

  • Appraisal: A determination of property value.
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
  • Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Usury: Charging an illegally high interest rate on a loan. Source: OCC
(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 § 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:

(A) The seller is a person, estate, or trust that transacts three or fewer residential mortgage loans in one calendar year;
(B) The seller is not a loan originator for purposes of the loan originator qualification requirements in 12 C.F.R. § 1026.36(f) and (g);
(C) 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;
(D) The interest rate for the loan does not exceed the State’s usury limit; provided that the exemptions from usury specified in § 478-8 shall not apply to transactions subject to this paragraph;
(E) The seller shall provide to the buyer the terms of the financing including:

(i) A current title search including any liens against the property;
(ii) The interest rate;
(iii) Monthly principal and interest payments;
(iv) Any prepayment penalty;
(v) Any late payment charges;
(vi) The payment schedule;
(vii) The total amount of interest that the mortgagor will pay over the term of the loan expressed as a percentage of the loan amount;
(viii) A calculation of projected aggregate monthly payments including principal and interest;
(ix) 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;
(x) The seller’s contact information including name, address, phone number, electronic mail address, and alternate contact information to the extent available; and
(xi) 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;
(F) 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
(G) A residential mortgage loan shall be recorded with the land court or bureau of conveyances as applicable.
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