HB2344 HD1

SECTION 1. Chapter 454M, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§454M- Enforcement authorities. (a) If the commissioner has reason to believe that a person has violated or is violating section 454M-2, the commissioner may issue orders or directives under this chapter as follows:

(1) Order or direct persons subject to this chapter to cease and desist from conducting business, including immediate temporary orders to cease and desist;

(2) Order or direct persons subject to this chapter to cease any harmful activities or violations of this chapter, including immediate temporary orders to cease and desist;

(3) Enter immediate temporary orders to cease doing business under a license issued pursuant to the authority granted under this chapter if the commissioner determines that the license was erroneously granted or the licensee or any person subject to this chapter is currently in violation of this chapter; or

(4) Order or direct any other affirmative action as the commissioner deems necessary.

(b) An order to cease and desist becomes effective upon service of the order upon the person.

(c) An order to cease and desist remains effective and enforceable pending the completion of an administrative proceeding pursuant to chapter 91.

(d) The commissioner shall commence an administrative proceeding within twenty days after issuing an order to cease and desist."

SECTION 2. Section 454M-4, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) [To] For the purpose and to the extent reasonably necessary to [~~participate in~~] use NMLS, the commissioner may modify, in whole or in part, by rule or order, any or all of the requirements of [~~subsections (e) and (i).~~] this chapter and establish new requirements."

SECTION 3. Section 454M-7, Hawaii Revised Statutes, is amended to read as follows:

"[[]§454M-7[]] License sanctions; [~~suspension, revocation, denial, condition, and refusal to renew, reinstate, or restore.~~] cease and desist and other orders. (a) In addition to any other actions authorized by law, the commissioner may suspend, revoke, deny, condition in any manner, or refuse to renew, reinstate, or restore, any license issued under this chapter, or fine any person holding a license issued under this chapter, for any violation of this chapter. All such orders shall be made pursuant to chapter 91[.], except as provided by section 454M- or another provision of this chapter.

(b) If the commissioner determines a violation of this chapter or a rule adopted or an order issued under this chapter by a licensee is likely to cause immediate and irreparable harm to the licensee, the licensee's customers, or the public as a result of the violation or is likely to cause insolvency or significant dissipation of assets of the licensee, then the commissioner may issue an order requiring the licensee to cease and desist from the violation. The order becomes effective upon service of the order upon the licensee.

(c) The commissioner may enter into a consent order at any time with a person to resolve a matter arising under this chapter. A consent order shall be signed by the person to whom the order is issued or by the person's authorized representative, and shall indicate agreement with the terms contained in the order. A consent order may provide that it does not constitute an admission by a person that this chapter or a rule adopted or an order issued under this chapter has been violated."

SECTION 4. Section 454M-8, Hawaii Revised Statutes, is amended to read as follows:

"§454M-8 Powers of commissioner. In addition to any other acts or conditions provided by law, the commissioner may:

(1) Adopt, amend, or repeal rules, issue declaratory rulings or informal nonbinding interpretations, and investigate and act upon written consumer complaints;

(2) Grant, deny, forfeit, renew, reinstate, or restore the license of any mortgage servicer;

(3) Revoke, suspend, or otherwise limit the license of any mortgage servicer for any violation of the provisions in this chapter, or any rule or order of, or agreement with the commissioner;

(4) Issue orders to cease and desist, and enter into consent orders;

[~~(4)~~] (5) Report any violation of this chapter or violation of federal or state law to the Consumer Financial Protection Bureau or other federal agency having jurisdiction over the licensee;

[~~(5)~~] (6) Investigate and conduct hearings regarding any violation of this chapter, or any rule or order of or agreement with the commissioner; and

[~~(6)~~] (7) Do any and all things necessary or incidental to the exercise of the commissioner's power and duties, including the authority to conduct contested case proceedings under chapter 91."

SECTION 5. Section 454M-10, Hawaii Revised Statutes, is amended to read as follows:

"§454M-10 Penalty. Any person who violates any provision of this chapter, rule adopted or order issued pursuant to this chapter, or agreement with the commissioner may be subject to an administrative fine of not more than $7,000 for each violation; provided that if the aggregate fine amount exceeds $7,000, $1,000 of the aggregate fine amount shall be deposited into the mortgage foreclosure dispute resolution special fund established pursuant to section 667-86."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2050.

HOUSE OF REPRESENTATIVES	H.B. NO.	2344
TWENTY-NINTH LEGISLATURE, 2018		H.D. 1
STATE OF HAWAII