Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 770, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to transfer regulatory oversight of mortgage brokers and mortgage solicitors from the Director of Commerce and Consumer Affairs to the Commissioner of Financial Institutions of the Department of Commerce and Consumer Affairs.

Specifically, this measure redefines "mortgage commissioner" to mean the Commissioner of Financial Institutions rather than the Director of Commerce and Consumer Affairs.

Your Committee finds that under the present administrative practice, the Director of Commerce and Consumer Affairs has delegated the regulation of mortgage brokers and mortgage solicitors to the Department of Commerce and Consumer Affairs' Professional and Vocational Licensing Division. Your Committee finds, however, that it is actually the Department's Division of Financial Institutions that possesses greater resources and background in the technical aspects of mortgage banking than does the Division of Professional and Vocational Licensing.

Your Committee has amended this measure by deleting the amendment requiring the mortgage broker or mortgage solicitor to register to do business with the Commissioner of Financial Institutions rather than with the Business Registration Division. Your Committee finds that registration with the Business Registration Division is something separate from licensure with the Professional and Vocational Licensing Division.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 770, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 770, S.D. 2.