State Agency Receives Mortgage Supervision Accreditation

The State Department of Commerce and Consumer Affairs’ (DCCA) division of Financial Institutions (DFI) received a certificate of accreditation for mortgage supervision from the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR).

The accreditation is a first for the division and reflects the DFI’s commitment to the standards and practices in mortgage supervision outlined by the CSBS/AARMR Mortgage Accreditation Program.  The accreditation program began in 2008.  The division applied for the accreditation last year.

Commissioner Iris Ikeda said the division was able to show it measured up over an 18-month period of implementing their mortgage program.

“Our staff has worked hard with the resources available to use technology to efficiently and appropriately license, supervise and examine the mortgage industry. I am proud of our mortgage program and our staff for the professional, hardworking, and conscientious job they do in enforcing Hawaii’s mortgage laws,” said Ikeda.

The DFI is tasked with licensing, regulating, supervising and examining the state’s 1450 mortgage loan originators, 235 mortgage loan originator companies, and 118 mortgage servicer companies.  The division is also responsible for chartering, supervising and examining the state’s financial institutions, money transmitters and escrow depositories.

The accreditation program’s aim is to strengthen state mortgage regulators and demonstrate quality standards to the general public, federal banking agencies, Congress, and other state regulatory agencies.

The accreditation involves the completion of an extensive questionnaire on all departmental operations.  An external review team consisting of veteran state and federal regulators then conduct an on-site review and present its findings to an audit team and to the Performance Standards Committee.  Members then vote according to the reports given by the review and audit team.