STAND. COM. REP. 1551

Honolulu, Hawaii

, 2003

RE: H.C.R. No. 142

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.C.R. No. 142 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE LEGISLATIVE REFERENCE BUREAU TO STUDY PREDATORY HOME LENDING IN HAWAII, EXISTING AND PROPOSED LAWS AND PROTECTIONS AGAINST PREDATORY HOME LENDING PRACTICES, AND MAKE RECOMMENDATIONS TO PROTECT HAWAII'S HOMEOWNERS FROM PREDATORY HOME LENDING PRACTICES,"

begs leave to report as follows:

The purpose of this measure is to request the Legislative Reference Bureau to study predatory home lending in Hawaii and make recommendations to protect consumers from predatory practices.

Specifically, this Concurrent Resolution requests that the Bureau's study of predatory home lending practices:

(1) Determine the extent of predatory home lending, including problems concerning unregulated persons;

(2) Review existing state and federal protections against predatory lending;

(3) Consider the effect of current and pending federal laws and regulations on state legislation;

(4) Survey other state laws and experiences in the area;

(5) Evaluate H.B. No. 1438, H.D. 1 and H.D. 2 in terms of protection and unintended consequences; and

(6) Recommend actions needed to protect Hawaii homeowners.

Your Committee finds that some residents of Hawaii have fallen victim to predatory home lending practices and, as a result, have lost or stand to lose their homes. A number of other states have laws that address predatory lending and a federal proposal is pending. Your Committee believes that this measure will clarify predatory home lending practices in Hawaii, by consulting all stakeholders or their representatives to get a clearer picture of the problem.

Upon further consideration, your Committee has amended this measure by making technical amendments that:

(1) Clarify the scope of the study to be conducted by the Legislative Reference Bureau to require the Bureau to consult with various parties concerning the range and type of practices that each agency or organization considers to be predatory home lending practices and available or desirable consumer protections;

(2) Simplifying the title for the purpose of clarity; and

(3) Adding the Hawaii Association of Realtors as a party to be consulted.

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 concurs with the intent and purpose of H.C.R. No. 142, as amended herein, and recommends its adoption in the form attached hereto as H.C.R. No. 142, H.D. 1.

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

 

____________________________

KENNETH T. HIRAKI, Chair