Bill Text: HI HB2375 | 2012 | Regular Session | Amended

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Bill Title: Property Foreclosures, Liens, and Encumbrances; Mortgage Rescue Fraud Prevention Act

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-06-29 - (S) Act 183, 6/28/2012 (Gov. Msg. No. 1286). [HB2375 Detail]

Download: Hawaii-2012-HB2375-Amended.html

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STAND. COM. REP. NO. 3253

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2375

       S.D. 2

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 2375, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE MORTGAGE RESCUE FRAUD PREVENTION ACT,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to increase consumer protections against fraudulent mortgage rescue services.

 

Specifically, the measure assists consumers by:

 

     (1)  Requiring the Office of Consumer Protection to educate consumers about fraudulent activities that may be committed against homeowners who face property foreclosures, liens, or encumbrances; and

 

     (2)  Establishing criminal penalties and a mandatory fine for certain violations of the Mortgage Rescue Fraud Prevention Act.

 

     Your Committee finds that unscrupulous individuals and entities purporting to be mortgage foreclosure rescuers offer fraudulent services to assist homeowners who face property foreclosures, liens, or encumbrances.  These scammers carry out their schemes while the homeowners are at their most vulnerable and in desperate financial circumstances.  Although current law provides for civil enforcement of any violation of the Mortgage Rescue Fraud Prevention Act as an unfair or deceptive trade practice, the addition of criminal penalties under this measure would enhance protections for a particularly vulnerable category of consumers.

 

     Your Committee has amended this measure by deleting, as unnecessary, the new provision in section 1 that provides for the deposit of civil and criminal fines into the compliance resolution fund.

 

     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. 2375, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2375, S.D. 2.

 

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

 

		____________________________ DAVID Y. IGE, Chair