THE SENATE

S.C.R. NO.

73

TWENTY-THIRD LEGISLATURE, 2006

  

STATE OF HAWAII

  
   

SENATE CONCURRENT

RESOLUTION

 

REQUESTING THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS TO CONVENE A TASK FORCE TO CONSIDER THE REGULATION OF MORTGAGE BROKERS BY THE DIVISION OF FINANCIAL INSTITUTIONS.

 

WHEREAS, mortgage brokers are fundamental to the banking and loan business and owe general fiduciary duties to borrowers; and

WHEREAS, mortgage brokers are currently regulated by the Professional and Vocational Licensing Division and the Regulated Industry Complaints Office of the Department of Commerce and Consumer Affairs; and

WHEREAS, the Division of Financial Institutions of the Department of Commerce and Consumer Affairs regulates all other aspects of the mortgage lending and banking industry; and

WHEREAS, the transfer of the regulatory control of the mortgage brokers to the Division of Financial Institutions would place all aspects of the mortgage lending industry under one regulatory body; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, the House of Representatives concurring, that the Director of Commerce and Consumer Affairs is requested to convene a Task Force to consider:

(1) Whether there should be a transfer of the regulation of mortgage brokers to the Division of Financial Institutions;

(2) The regulatory scheme to be employed if such a transfer is recommended; and

(3) Other changes to the existing regulatory scheme even if no such transfer is recommended; and

BE IT FURTHER RESOLVED that the Task Force membership shall be comprised as follows:

(1) One person designated by the Director of Commerce and Consumer Affairs representing the Division of Financial Institutions;

(2) One person designated by the Director of Commerce and Consumer Affairs representing the Professional Vocational Licensing Division;

(3) One person designated by the Director of Commerce and Consumer Affairs representing the Regulated Industries Complaints Office;

(4) Three persons representing the Hawaii Association of Mortgage Brokers;

(5) Three persons representing the Hawaii Bankers Association;

(6) Three persons representing the Hawaii Financial Services Association;

(7) Three persons representing the Mortgage Bankers Association of Hawaii;

(8) Three persons representing the Hawaii Credit Union League;

(9) One person representing State Farm Insurance Companies and State Farm Bank;

(10) One person representing Primerica Financial Services Home Mortgages, Inc.; and

(11) One person representing the Hawaii Association of Realtors; and

BE IT FURTHER RESOLVED that the Director of Commerce and Consumer Affairs shall submit a report to the Legislature no later than thirty days prior to the convening of the Regular Session of 2007, containing the recommendations of the Task Force, and shall also submit any proposed legislation that has the unanimous support of the Task Force members; and

BE IT FURTHER RESOLVED that the Task Force members are requested to serve on a voluntary basis and to assume responsibility for any costs associated with their participation on the Task Force; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Commerce and Consumer Affairs, the Commissioner of Financial Institutions, the Hawaii Association of Mortgage Brokers, the Hawaii Bankers Association, the Hawaii Financial Services Association, the Mortgage Bankers Association of Hawaii, the Hawaii Credit Union League, State Farm Insurance Companies and State Farm Bank, Primerica Financial Services Home Mortgages, Inc., and the Hawaii Association of Realtors.

 

 
 

OFFERED BY:

_____________________________

Report Title:

DCCA Task Force Considering regulation of mortgage brokers.