- November 13, 2002
- All Issuing Offices in Hawaii (Independent Agents)
- Beneficial Hawaii v. Kida - Mortgage Arranged By An Unlicensed Mortgage Broker is Void
Stewart Title Guaranty Company is currently defending three mortgagee's policies issued in Hawaii, wherein the mortgagors are contending their mortgages are void as they were originated or arranged by a mortgage broker that was unlicensed with the State of Hawaii.
In light of this, great care should be taken prior to issuing mortgagee's polices without first checking to see that the broker/lender is properly licensed and in good standing with the State of Hawaii.
Lenders fall under the Division of Financial Institutions, Hawaii Department of Commerce and Consumer Affairs (DCCA). Their website is, http://www.state.hi.us/dcca/dfi/regulated.html .
Mortgage brokers and solicitors fall under "Professional and Vocational Licensing". Their website is, http://www.ehawaiigov.org/serv/pvl .
Also, should you be asked to issue a "Doing Business" endorsement in conjunction with any mortgagee's policy, please contact a STG underwriter for approval.District Office: (800) 423-7834
National Legal Department: (800) 729-1902
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.