Bill Text: HI SB2764 | 2012 | Regular Session | Amended

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Bill Title: Mortgage Servicers

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2012-03-08 - (H) Referred to CPC, FIN, referral sheet 41 [SB2764 Detail]

Download: Hawaii-2012-SB2764-Amended.html

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STAND. COM. REP. NO. 2739

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2764

       S.D. 1

 

 

 

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 S.B. No. 2764 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 require every mortgage servicer who provides loan modification services that would require licensure as a mortgage loan originator to be licensed as a mortgage loan originator, in addition to being licensed as a mortgage servicer.

 

     Your Committee finds that mortgage servicers provide a variety of services including some mortgage loan modification services that could be considered to be mortgage loan originator activities.  Any licensed mortgage servicer providing these services must also be licensed as a mortgage loan originator.  However, this requirement is not always evident to those who hold mortgage servicer licenses.  Your Committee believes this measure will help to clarify these distinctions and ensure that anyone providing mortgage loan origination services shall be properly licensed to do so.

 

     Your Committee also notes the possibility that mortgage servicers may become required to register with the Nationwide Mortgage Licensing System.  Your Committee further finds that, should that occur, this measure expands the Commissioner of Financial Institutions' authority to allow the Commissioner to work with the Nationwide Mortgage Licensing System and establish a program similar to the recently established program for mortgage loan originators and mortgage loan originator companies.

 

     Your Committee has amended this measure by:

 

     (1)  Providing a definition for the term "Nationwide Mortgage Licensing System";

 

     (2)  Adding a savings clause to ensure that penalties provided by this measure are not applied to violations that occurred prior to its effective date; and

 

     (3)  Making technical nonsubstantive amendments for the purposes of consistency, clarity, and style.

 

     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 S.B. No. 2764, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2764, S.D. 1.

 

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

 

		____________________________ DAVID Y. IGE, Chair