Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 2279 entitled:

begs leave to report as follows:

The purpose of this measure is to repeal the existing law on mortgage brokers and solicitors and replace it with a statute providing more specialized regulation of these financial service providers.

Testimony in support of this measure was submitted by the Commissioner of Financial Institutions. Testimony in opposition to this measure was submitted by Primerica Financial Services Home Mortgages, Inc., Mortgage Bankers Association of Hawaii, Hawaii Association of Mortgage Brokers, and two interested individuals. Comments were also submitted by Hawaii Financial Services Association.

Your Committee finds that while specialized regulation is desirable, there continues to be debate on what that should entail. Your Committee feels that the affected parties should continue to dialogue on the areas of disagreement raised by this measure. Your Committee has amended the effective date of this measure from "July 1, 2007" to "July 1, 2050" to ensure further discussion.

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 S.B. No. 2279, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2279, S.D. 1, and be referred to the Committee on Ways and Means.