STAND. COM. REP. NO.  1112

Honolulu, Hawaii

                , 2017

RE:   S.B. No. 950

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Intrastate Commerce, to which was referred S.B. No. 950, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to update regulatory statutes for mortgage servicers.

Specifically, this measure:

     (1)  Requires approval from the Commissioner of Financial Institutions prior to any change in control of a mortgage servicer;

     (2)  Clarifies the criteria for determining whether an individual exercises control of a mortgage servicer and which individuals are subject to examination, disclosure, and qualification requirements; and

     (3)  Clarifies that a mortgage servicer shall not act as a mortgage loan originator without a license as such.

The Department of Commerce and Consumer Affairs supported this measure.

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2090, to promote further discussion; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Intrastate Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 950, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 950, S.D. 2, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Intrastate Commerce,

____________________________

TAKASHI OHNO, Chair