STAND. COM. REP. NO. 677-18

Honolulu, Hawaii

, 2018

RE: H.B. No. 1957

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1957 entitled:

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

begs leave to report as follows:

The purpose of this measure is to override the ruling in Bank of New York Mellon v. Rumbawa by prohibiting a person who is entitled to enforce a mortgage note as a negotiable instrument from foreclosing on the property in a foreclosure by action unless the person establishes that the person is the owner of the mortgage note.

The Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii and three individuals testified in support of this measure. Hawaii Financial Services Association and Hawaii Bankers Association opposed this measure.

Your Committee has amended this measure by changing its effective date to July 1, 2050, to facilitate further discussion.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1957, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1957, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

ROY M. TAKUMI, Chair