STAND. COM. REP. NO. 781

Honolulu, Hawaii

RE:    S.B. No. 1519

       S.D. 3

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 1519, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO MORTGAGE LOAN ORIGINATORS,"

begs leave to report as follows:

     The purpose and intent of this measure is to make several amendments to the Secure and Fair Enforcement for Mortgage Licensing Act with regard to mortgage loan originators.

     Your Committee received comments in support of this measure from Scott Coffman, Hawaii Association of Mortgage Brokers.

     Your Committee received comments on this measure from Iris Ikeda Catalani, Commissioner of Financial Institutions, Department of Commerce and Consumer Affairs.

     Your Committee finds that most of the amendments in this measure will make the licensing determination process more expedient and efficient, and make Hawaii's law consistent with the language and purposes of the Nationwide Mortgage Licensing System, which became operational for Hawaii licensees in the latter part of 2010.  The few substantive changes in the measure respond to the realization that the current statute fails to address important prohibited mortgage loan originator practices.

     Your Committee has amended this measure by making technical nonsubstantive amendments for the purposes of clarity and style.

     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. 1519, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1519, S.D. 3.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair