STAND. COM. REP. NO.  948-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2501

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2501 entitled:

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

begs leave to report as follows:

The purpose of this measure is to protect Hawaii homeowners by amending the Secure and Fair Enforcement for Mortgage Licensing Act, Chapter 454F, Hawaii Revised Statutes, to reflect recent changes in federal law and to adjust fees in light of new regulatory requirements.

The Mortgage Bankers Association of Hawaii supported this bill.  The Hawaii Credit Union League opposed this measure.  The Department of Commerce and Consumer Affairs and Hawaii Association of Mortgage Brokers submitted comments.

     After careful consideration, your Committee has amended this bill by:

     (1)  With respect to the fees that a mortgage loan originator must pay to obtain and maintain a valid mortgage loan originator license:

          (A)  Increasing the initial application fee to $600;

          (B)  Increasing the annual license renewal fee to $350; and

          (C)  Establishing an unspecified one-time application fee for mortgage loan originators that are sole proprietorships and exempting these individuals from annual license renewal fees; and

     (2)  Making technical, nonsubstantive amendments for purposes of consistency, clarity, 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. 2501, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2501, H.D. 1.

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

____________________________

MARCUS R. OSHIRO, Chair