STAND. COM. REP. NO.  1523

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 1006

      S.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1006, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MORTGAGE BROKERS AND SOLICITORS,"

begs leave to report as follows:

     The purpose of this bill is to eliminate duplicate regulation of mortgage brokers and solicitors by exempting savings associations and the operating subsidiaries of banks from mortgage broker and solicitor licensing requirements under Chapter 454, Hawaii Revised Statutes (HRS).

     The Department of Commerce and Consumer Affairs (DCCA), Central Pacific Bank, and Central Pacific HomeLoans testified in support of this bill.  Primerica Financial Services Home Mortgages, Inc., submitted comments.

     Your Committee finds that mortgage brokers and solicitors working in banks are regulated by DCCA's Division of Financial Institutions (DFI) under Chapter 412, HRS.  Mortgage brokers and solicitors who work in a bank's operating subsidiary, however, are regulated by both DFI and DCCA's Professional and Vocational Licensing Division (PVLD) under Chapter 454, HRS.  While there is currently an exemption from PVLD regulation for banks that have mortgage operations, there is no specific exemption for the operating subsidiaries of a bank.  This bill seeks to eliminate this duplicate regulation by exempting mortgage brokers and solicitors of a bank's operating subsidiaries from PVLD regulation.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1006, S.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

____________________________

ROBERT N. HERKES, Chair