STAND. COM. REP. NO. 3772

Honolulu, Hawaii

RE: H.B. No. 2323

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Judiciary and Ways and Means, to which was referred H.B. No. 2323, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE MORTGAGE LOAN RECOVERY FUND,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Expand the pool of persons eligible to receive restitution from the Mortgage Loan Recovery Fund; and

(2) Authorize the Director of Commerce and Consumer Affairs to issue orders of restitution.

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

Your Committees find that under existing law, a person aggrieved by a licensee's fraud, misrepresentation, or deceit must obtain a judgment against the licensee in circuit or district court and then obtain an order from the court for payment from the Mortgage Loan Recovery Fund. This measure simplifies the process by allowing payments based on the entry of the order and allows restitution to be received by order of the Commissioner of Financial Institutions, without a separate post-judgment order.

Your Committees have amended this measure by making it effective upon its approval.

As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2323, H.D. 2, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 2323, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ KARL RHOADS, Chair