STAND. COM. REP. NO. 2725

Honolulu, Hawaii

RE: S.B. No. 3083

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 3083 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Commissioner of Financial Institutions to modify or waive requirements in chapter 454M, Hawaii Revised Statutes, to implement changes and improvements made to the National Multi-State Licensing System and Registry (NMLS).

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

Your Committee finds that most states' agencies have adopted the process of streamlining and standardizing the filing of electronic surety bonds through NMLS. Hawaii remains one of the few states that has not adopted this modernized process and requires applicants and licensees to physically submit a surety bond with the Commissioner of Financial Institutions before the license becomes effective. If there is any error in the surety bond, for example, a typo in the name or address, the Division of Financial Institutions is required to mail the surety bond back to the insurer and request a new surety bond. This physical transfer process can add significant delays. Accordingly, this measure will allow the Commissioner of Financial Institutions to implement modern features through NMLS to streamline the licensing process for mortgage servicers, similar to the existing licensing process for mortgage loan originators and money transmitters.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3083 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

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ROSALYN H. BAKER, Chair