STAND. COM. REP. NO. 1531

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1134
                                     S.D. 1
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred S.B. No. 1134, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO REVERSE MORTGAGES,"

begs leave to report as follows:

     The purpose of this bill is to mandate consumer mortgage
counseling similar to federal guidelines, prior to a lender's
acceptance of a reverse mortgage loan application.  This
counseling is intended to ensure that borrowers can make informed
decisions on reverse mortgage financing. 

     The Office of Consumer Protection of the Department of
Commerce and Consumer Affairs testified generally in support of
the bill, but indicated a preference for the amendments reflected
in H.B. No. 1072, H.D. 1, which incorporated the latest revisions
agreed upon by the interested parties.  The State of Hawaii
Executive Office on Aging and the Hawaii Association of Realtors
testified in support of the bill.

     For purposes of further discussion, your Committee has
amended this bill by replacing its contents with that of the
House companion bill, H.B. No. 1072, H.D. 1, which was passed out
earlier this session by your Committee and which contains
substantive differences from the Senate version.

 
 
 
 
 
                                 STAND. COM. REP. NO. 1531
                                 Page 2

 

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 1134, S.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 1134, S.D. 1, H.D. 1, and be placed on the
calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair