Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 1737, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize an experience equivalency, for purposes of mortgage broker and solicitor licensure, based upon experience in selling mortgage loans solely through a wholly owned insured depository institution that is a subsidiary of an insurance company.

State Farm Insurance Companies and six individuals testified in support of this measure. The Department of Commerce and Consumer Affairs presented comments.

Under current law, one of the requirements for licensure as a mortgage broker or solicitor is two years of experience in financial transactions involving primary or subordinate mortgage financing, or equivalent experience as determined by the mortgage commissioner.

This measure allows a claim for experience equivalency by an insurance agent who offers or provides mortgage loans solely through a wholly owned banking subsidiary of the insurance company with whom the agent has an exclusive agency relationship. Your Committee finds that this equivalency exemption is consistent with the licensure exemption established in section 454-2(1), Hawaii Revised Statutes, for banks and other financial institutions.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1737, H.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.