STAND. COM. REP. NO. 877

Honolulu, Hawaii

RE:    S.B. No. 1422

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 1422 entitled:

"A BILL FOR AN ACT RELATING TO SANCTIONS FOR VIOLATIONS BY MORTGAGE BROKERS AND SOLICITORS COMMITTED AGAINST ELDERS,"

begs leave to report as follows:

     The purpose of this measure is to provide additional sanction for violations by mortgage brokers and solicitors against elders.

     Your Committee received testimony in support of the bill from the Attorney General's Office and from the Department of Commerce and Consumer Affairs.  There was no testimony in opposition.

     Your Committee finds that complaints against mortgage brokers have been received concerning conduct harmful to elderly consumers and is concerned that such conduct, if undeterred, will increase.  Reverse mortgages were being offered when not appropriate by unlicensed mortgage brokers with the assistance of a mortgage broker.  The bill would provide for monetary sanctions in an amount not to exceed $10,000 for each violation.

     Your Committee amended the bill by adding a savings clause which is appropriate to preserve rights, remedies, or privileges of pending proceedings.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1422, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1422, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

CLAYTON HEE, Chair