STAND. COM. REP. NO.  560-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2275

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred H.B. No. 2275 entitled:

"A BILL FOR AN ACT RELATING TO MORTGAGE RESCUE FRAUD,"

begs leave to report as follows:

The purpose of this measure is to enhance the protections provided to consumers against mortgage rescue fraud by amending the definition of "distressed property consultant" in section 480E-2, Hawaii Revised Statutes, to:

(1)  Include persons who provide, attempt to perform or provide, arrange for others to perform or provide, assist others to perform or provide, or offer to provide certain mortgage rescue services; and

(2)  Clarify that practicing attorneys licensed in Hawaii are exempt from this definition.

The Department of Commerce and Consumer Affairs, Office of Consumer Protection testified in support of this measure.  The Hawaii Bankers Association supported the intent of this measure.

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2275 and recommends that it pass Third Reading.

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

____________________________

KARL RHOADS, Chair