STAND. COM. REP. NO. 1946

Honolulu, Hawaii

RE: H.B. No. 988

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 988, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSITIONAL AUTHORITY IN THE MORTGAGE INDUSTRY,"

begs leave to report as follows:

The purpose and intent of this measure is to implement Section 106 of the federal Economic Growth, Regulatory Relief, and Consumer Protection Act (Section 106), which provides a one hundred twenty-day temporary transitional authority to originate loans in this State for loan originators moving from a depository institution to a non-depository institution and state-licensed loan originators moving interstate.

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

Your Committee finds that federal law requires states to provide a one hundred twenty-day temporary authority to certain state-licensed mortgage loan originators moving from a depository institution to a non-depository institution and state-licensed loan originators moving interstate. This measure adds a new part to chapter 454F, Hawaii Revised Statutes, to implement these federal requirements in Hawaii.

Your Committee has amended this measure by making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

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. 988, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 988, H.D. 1, S.D. 2.

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

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KARL RHOADS, Chair