STAND. COM. REP. NO. 3756

Honolulu, Hawaii

RE: H.B. No. 2641

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2641, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO APPRAISAL MANAGEMENT COMPANIES,"

begs leave to report as follows:

The purpose and intent of this measure is to reestablish the appraisal management company registration program within the Department of Commerce and Consumer Affairs.

More specifically, this measure:

(1) Codifies as a new chapter the provisions of the repealed chapter 466L, Hawaii Revised Statutes;

(2) Clarifies the repeal of chapter 466L, Hawaii Revised Statutes;

(3) Authorizes the Department of Commerce and Consumer Protection to employ certain personnel without regard to chapter 76, Hawaii Revised Statutes; and

(4) Appropriates moneys out of the compliance resolution fund to implement the appraisal management company registration program.

Your Committee received written comments in support of this measure from Hawaii Bankers Association, Hawaii Financial Services Association, Hawaii REALTORS, Mortgage Bankers Association of Hawaii, Real Estate Valuation Advocacy Association, and one individual.

Your Committee received written comments on this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that pursuant to section 26H-4, Hawaii Revised Statutes, the appraisal management company registration program was repealed on June 30, 2023. Your Committee notes that without an active appraisal management company registration program in the State, lenders that serve Hawaii mortgage consumers are no longer able to use appraisal management companies to perform federally related transactions in the State, adversely impacting home affordability and ownership in the State. Your Committee therefore believes that re-establishing the appraisal management company registration program will help to mitigate these adverse impacts on home affordability and ownership throughout the State.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2641, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair