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Mortgage licensing / Hawaii

Hawaii Escrow Depository License

company licence · NMLS HIESCROWDEPO_C · DFI

Requirements (17)

  1. Step 1

    Financial Statements: Upload an AUDITED financial statement prepared by a Certified Public Accountant in accordance with Generally Accepted Accounting Principles dated within 90 days of your fiscal year end. Financial statements should include a balance sheet, income statement, statement of changes in shareholder equity, and statement of cash flows and all relevant notes thereto. If applicant is a start-up company, an initial statement of condition and five year projections are required. The financial statement must illustrate a company net capital (net worth) of $100,000.

    Submitted via: NMLS

  2. Step 2

    Other Trade Name: If operating under a name that is different from the applicant’s legal name, that name (“Trade Name”, “Assumed Name” or “DBA”) must be listed under the Other Trade Names section of the Company Form (MU1). HI-DFI does not limit the number of other trade names. If operating under an “Other Trade Name”, upload a copy of the approved registration of trade name files with the State of Hawaii, Business Registration Division (BREG) regarding ability to do business under that trade name. This document should be named [State-License Type] Trade Name – Assumed Name.

    Submitted via: NMLS Upload in NMLS: under the Document Type Trade Name/Assumed Name Registration Certificates in the Document Uploads section of the Company Form (MU1).

  3. Step 3

    Resident/Registered Agent: The Resident/Registered Agent must be listed under the Resident/Registered Agent section of the Company Form (MU1) and must match the information currently on record with BREG.

    Submitted via: NMLS

  4. Step 4

    Qualifying Individual: The HI Designated Escrow Officer should be identified as the Qualifying Individual in NMLS. Section 449-7.5(c), HRS, requires that an escrow depository business shall be under the direct management of an officer, or an employee, designated by its board of directors as escrow officer for the corporation This individual must be listed in the Qualifying Individual section of the Company Form (MU1).

    Submitted via: NMLS

  5. Step 5

    AML/BSA Policy: Upload an Anti-Money Laundering (AML) / Bank Secrecy Act (BSA) Policy that must include independent review.

    Submitted via: Upload in NMLS: under the Document Type AML/BSA Policy in the Document Uploads section of the Company Form (MU1).

  6. Step 6

    Business Plan: Upload a business plan outlining the following information: • Marketing strategies • Products • Target markets • Fee schedule • Operating structure the applicant intends to employ. This document should be named [Company Legal Name] Business Plan. Note: If the existing uploaded business plan already includes the above information, an additional document does not need to be uploaded. A company should only upload a single business plan. If state-specific material is required, this information should be added to the existing uploaded business plan.

    Submitted via: Upload in NMLS: under the Document Type Business Plan in the Document Uploads section of the Company Form (MU1).

  7. Step 7

    Certificate of Authority/Good Standing Certificate: Upload a State-issued and approved document (typically by the Secretary of State’s office), dated not more than 60 days prior to the filing of the application through NMLS that demonstrates authorization to do business in the applicant’s state of formation and HI. This document should be named [[State prefix] Certificate of Authority OR [State prefix] Certificate of Good Standing].

    Submitted via: Upload in NMLS: under the Document Type Certificate of Authority/Good Standing Certificate in the Document Uploads section of the Company Form (MU1).

  8. Step 8

    Errors and Omissions: Submit proof of errors and omissions insurance executed by an insurer authorized to do business in the State in an amount not less than $250,000; provided that any policy which is subject to a deductible thereunder in excess of $100,000, per occurrence, shall require the prior approval of the commissioner; or Deposit an equivalent amount of cash or other security device under such terms and conditions as are acceptable to the commissioner. The full policy must be uploaded. This document should be named Errors and Omissions Insurance.

    Submitted via: Upload in NMLS: under Errors and Omissions (Insurance Policy) in the Document Uploads section of the Company Form (MU1).

  9. Step 9

    Fidelity Bond: Submit a fidelity bond executed by a surety insurer authorized to do business in the State in an amount not less than $100,000; provided that any bond which is subject to a deductible thereunder in excess of $10,000 per occurrence shall require the prior approval of the commissioner, or Deposit an equivalent amount of cash or other security device under such terms and conditions as are acceptable to the commissioner. The full policy must be uploaded. This document should be named Fidelity Bond.

    Submitted via: Upload in NMLS: under Fidelity Bond in the Document Uploads section of the Company Form (MU1).

  10. Step 10

    Formation Documents: Submit a copy of the requested applicable documentation detailed below. Original formation documents and all subsequent amendments, thereto including a list of any name changes. This document should be named Formation Documentation [Date of Creation (MM-DD-YYYY)]. Corporation: • Articles of Incorporation (including all amendments); • By-laws (including all amendments), if applicable; • Shareholder Agreement (including all amendments), if applicable; • IRS Form 2553 if S-corp treatment elected; and • Corporate resolution if authority to complete application not in By-Laws or Shareholder Agreement, as amended, as applicable.

    Submitted via: Upload in NMLS: under Formation Document” in the Document Uploads section of the Company Form (MU1).

  11. Step 11

    Management Chart: Submit a Management chart displaying the applicant’s directors, officers, and managers (individual name and title). Must also identify compliance reporting and internal audit structure. This document should be named [Company Legal Name] Management Chart. Note: If the existing uploaded management chart already includes the above information, an additional document does not need to be uploaded. A company should only upload a single management chart.

    Submitted via: Upload in NMLS: under Management Chart in the Document Uploads section of the Company Form (MU1).

  12. Step 12

    Organizational Chart/Description: Submit a chart showing (or a description which includes) the percentage of ownership of: • Direct Owners (total direct ownership percentage must equate to 100%) • Indirect Owners • Subsidiaries and Affiliates of the applicant/licensee This document should be named [Company Legal Name] Organizational Chart – Description. Note: If the existing uploaded Organizational Chart/Description already includes the above information, an additional document does not need to be uploaded. A company should only upload a single management chart.

    Submitted via: Upload in NMLS: under Organizational Chart/Description in the Document Uploads section of the Company Form (MU1).

  13. Step 13

    Escrow Depository's Bond: Before an escrow depository's license becomes effective, the escrow depository shall give a bond to the commissioner in the penal sum of not less than $100,000 executed by a surety insurer authorized in this State, conditioned: (1) That the escrow depository will honestly, faithfully, and with diligence apply all funds, other consideration, or property and instruments affecting title in accordance with the instructions under which the same were deposited with it, and will promptly account for the same; and (2) That the escrow depository will satisfy all judgments and decrees which may be recovered against it in any action or proceeding brought under this chapter. The aggregate liability of the surety for all breaches of the conditions of the bond shall, in no event, exceed the penal sum of the bond. In lieu of the bond, an escrow depository may deposit cash, a letter of credit, or securities acceptable to the commissioner This document should be named [License Type] Surety Bond.

    Submitted via: Upload in NMLS: under Surety Bond in the Document Uploads section of the Company Form (MU1). Note: This item must also be mailed to the agency.

  14. Step 14

    Escrow Depository's Bond: Submit the original bond in the amount described above.

    Submitted via: Mail to HI-DFI

  15. Step 15

    Section 449-6, HRS Required Information: Provide the following information as required by Section 449-6 HRS. 1) The corporate name, amount of capital, and office address of the applicant; 2) The names of the stockholders, officers, and directors of the applicant; 3) Evidence of the character, financial responsibility, experience, and ability of the officers and directors; and The names of the proposed escrow officers and their qualifications.

    Submitted via: Email to Dfi-nmls@dcca.hawaii.gov

  16. Step 16

    FBI and Hawaii Criminal Background Check (CBC) Requirements: An individual in a position of control (any person identified in the Company Form MU1 as a MU2 associated person) is required toauthorize an FBI criminal background check (CBC) through NMLS. Hawaii also requires a State CBC. Individuals will have the opportunity to request a State CBC and pay for any applicable fees at the time the fingerprinting appointment is scheduled through the Fieldprint scheduling site. Applicants must select “escrow depository” from the dropdown list that appears after Hawaii is selected. Selecting the incorrect license type will require resubmission of fingerprints. If fingerprints must be resubmitted for a State CBC, schedule a fingerprinting appointment directly through the FieldPrint Hawaii website (a resubmission cannot be done through NMLS; fingerprints on file in NMLS cannot be used to conduct the State CBC). • FieldPrint Hawaii will ask you to identify the reason for being fingerprinted. Enter FP code: HI-DCCA-ED. If you do not select this code for money transmitters, we will not be able to use any information received and you will be required to redo your fingerprints.

    Submitted via: NMLS

  17. Step 17

    Notice By Publication: Submit an affidavit of publication as evidence that the Applicant has published notice of the proposed transaction in a newspaper of general circulation in the State, pursuant to Section 16-28-19, HAR.

    Submitted via: Mail to HI-DFI OR Email to Dfi-nmls@dcca.hawaii.gov

General information

Who Is Required To Have This License? Pursuant to Chapter 449, Hawaii Revised Statutes (“HRS”), no person shall act as an escrow depository in this State unless it is a corporation licensed to do so by the Commissioner of Financial Institutions. An escrow depository, as defined by Chapter 449, HRS, means the corporation which, in an escrow, and for compensation, receives, holds, and delivers the money, other consideration, or instrument affecting title to real property. Certain exemptions from Chapter 449, HRS can be found in Section 449-3, HRS. Activities Authorized Under This License This license authorizes the following activities… • Escrowing agents Pre-Requisites for License Applications • None. Hawaii Division of Financial Institutions (HI-DFI)issues paper licenses for this license type.

Other Hawaii mortgage licenses

Sourced from the NMLS/CSBS state licensing record, last updated June 3, 2024. Requirements change — confirm against the state agency before filing. Not legal advice.

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