Bill Text: HI SB2910 | 2010 | Regular Session | Amended
Bill Title: Residential Real Property; Mortgage Foreclosure
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2010-04-20 - (H) Act 036, on 4/19/2010 (Gov. Msg. No. 248). [SB2910 Detail]
Download: Hawaii-2010-SB2910-Amended.html
STAND. COM. REP. NO. 2209
Honolulu, Hawaii
RE: S.B. No. 2910
Honorable Colleen Hanabusa
President of the Senate
Twenty-Fifth State Legislature
Regular Session of 2010
State of Hawaii
Madam:
Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2910 entitled:
"A BILL FOR AN ACT RELATING TO REAL PROPERTY,"
begs leave to report as follows:
The purpose of this measure is to prohibit a foreclosing mortgagee from requiring a buyer of residential real property that is improved by four or fewer dwelling units to purchase the services of a title insurer or escrow depository specified by the foreclosing mortgagee.
Your Committee received testimony in support of this measure from Title Guaranty Escrow Services, Inc. Written testimony presented to the Committee may be reviewed on the Legislature's website.
Your Committee finds that as foreclosures increase in the State, it becomes even more important to assure that the process is carried out fairly to all parties involved, including the purchasers of foreclosed properties. Your Committee finds that this measure prohibits a foreclosing mortgagee from unfairly using its institutional leverage to purchase title insurance or guarantee services from a provider dictated by the mortgagee. Your Committee finds that this practice not only impinges on the purchaser's right to contract freely and disadvantages local businesses in favor of out-of-state interests that have preexisting relationships with large institutional lenders, but it also contravenes federal law. Your Committee notes that although the Real Estate Settlement Procedures Act prohibits a seller from requiring a buyer to purchase title insurance from a particular insurer as a condition of sale, the federal law is rarely enforced and the practice continues to be widespread. Finally, your Committee notes that California and Florida have also passed similar legislation to this measure.
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. 2910 and recommends that it pass Second Reading and be referred to the Committee on Judiciary and Government Operations.
Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,
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____________________________ ROSALYN H. BAKER, Chair |
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