STAND. COM. REP. NO. 2143

Honolulu, Hawaii

RE:    S.B. No. 2764

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2764 entitled:

"A BILL FOR AN ACT RELATING TO MORTGAGE SERVICERS,"

begs leave to report as follows:

     The purpose and intent of this measure is to require anyone providing mortgage loan origination services to be licensed as a mortgage servicer.

     Your Committee received testimony in support of this measure from the Division of Financial Institutions of the Department of Commerce and Consumer Affairs.

     Your Committee finds that persons acting as mortgage servicers provide a range of services, including some mortgage loan modification services that could be considered mortgage loan originator activities.  Your Committee further finds that a mortgage servicer license cannot take the place of a mortgage loan originator's license if a person is providing mortgage loan originator services.  This measure seeks to ensure that anyone who provides mortgage loan origination services is licensed to do so, even if that person is already licensed as a mortgage servicer.

     Your Committee additionally finds that this measure allows the Insurance Commissioner to require mortgage servicers to register with the Nationwide Mortgage Licensing System if necessary, and provides the Insurance Commissioner with more discretion when imposing fines for violations.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2764 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

____________________________

ROSALYN H. BAKER, Chair