STAND. COM. REP. NO.  439-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 3088

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred H.B. No. 3088 entitled:

"A BILL FOR AN ACT RELATING TO RESIDENTIAL MORTGAGE PRACTICES,"

beg leave to report as follows:

     The purpose of this bill is to enhance the regulation of mortgage brokers and solicitors by replacing the existing law regulating these entities with a new law providing for more specialized regulation by the Division of Financial Institutions of residential mortgage brokers, residential mortgage lenders, and residential loan originators.

     The Department of Commerce and Consumer Affairs (DCCA) testified in support of this bill.  The Hawaii Financial Services Association, First Hawaiian Bank, and Primerica Financial Services Home Mortgages, Inc., supported the intent of this measure.  The Mortgage Bankers Association of Hawaii and numerous concerned individuals opposed this bill.

     Your Committees note that H.B. No. 2408 has the similar purpose of improving the regulation of mortgage brokers and solicitors, albeit through a different approach that your Committees have decided to pursue at this time.  However, H.B. No. 2408 has not been referred to the Committee on Finance and lacks an appropriation that may be necessary to fund DCCA's administration of the provisions of that bill.

     Accordingly, your Committees have amended this bill by replacing its contents with an appropriation for DCCA to administer and enforce the provisions of H.B. No. 2408 regulating mortgage brokers and solicitors.

     As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 3088, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 3088, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

____________________________ TOMMY WATERS, Chair

____________________________ ROBERT N. HERKES, Chair