STAND. COM. REP. NO.  971-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2326

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2326, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MORTGAGES,"

begs leave to report as follows:

     The purpose of this bill is to protect homeowners who face property foreclosures, liens, or encumbrances (distressed property) by, among other things:

     (1)  Requiring contracts for distressed property consultation services or conveyances to be in writing with minimum disclosures and a homeowner's right of cancellation;

     (2)  Establishing requirements for distressed property leases;

     (3)  Prohibiting certain acts by distressed property consultants and purchasers;

     (4)  Limiting the amount a distressed property purchaser can charge for a homeowner to repurchase the distressed property in a distressed property conveyance contract; and

     (5)  Establishing a minimum amount of consideration to be paid to the homeowner in a distressed property conveyance contract.

     The Department of Commerce and Consumer Affairs, Legal Aid Society of Hawaii, and Hawaii Association of REALTORS testified in support of this bill.

     Your Committee has amended this bill by making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2326, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2326, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair