STAND. COM. REP. NO. 3253

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2005
                                        H.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 2005, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO REVERSE MORTGAGES,"

begs leave to report as follows:

     The purpose of this measure is to clarify the definition of
reverse mortgage loan.

     Your Committee received testimony from the Regulated
Industries Complaints Office, Mortgage Bankers Association of
Hawaii, Hawaii Bankers Association, and Hawaii Financial Services
Association.

     This measure adds to the definition of reverse mortgage loan
that the loan:

     (1)  Be a nonrecourse loan;

     (2)  Provide cash advances to the borrower based on the
          equity or the value of the borrower's residence;

     (3)  Require no payment of principal or interest until the
          entire loan comes due; and

     (4)  Be made by a licensed or chartered lender.


 
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                                   STAND. COM. REP. NO. 3253
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     Your Committee finds that the amendments to the definition
are reasonable and do not alter the existing practices.

     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 H.B. No. 2005, H.D. 1, 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,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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