STAND. COM. REP. NO. 3251
RE: H.B. No. 2501
Honorable Shan S. Tsutsui
President of the Senate
Twenty-Sixth State Legislature
Regular Session of 2012
State of Hawaii
Your Committee on Ways and Means, to which was referred H.B. No. 2501, H.D. 1, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO MORTGAGE LOAN ORIGINATION,"
begs leave to report as follows:
The purpose and intent of this measure is to amend the Secure and Fair Enforcement for Mortgage Licensing Act to reflect recent changes in federal law and adjust fees in consideration of new regulatory requirements for mortgage loan originator activities.
Your Committee received written comments in support of this measure from the Hawaii Association of Mortgage Professionals.
Your Committee finds that mortgage loan originators offer or negotiate the terms of residential mortgage loans or accept applications for these loans. These professionals are licensed under the Secure and Fair Enforcement for Mortgage Licensing Act, which this measure amends to incorporate new federal requirements designed to strengthen consumer protections relating to mortgage loan origination.
Your Committee has amended this measure by:
(1) Clarifying the application of the new definition of "housing finance agency" to nonprofit organizations;
(2) Amending the definition of "Nationwide Mortgage Licensing System" in the Secure and Fair Enforcement for Mortgage Licensing Act to reflect that this entity is alternatively known as the "Nationwide Mortgage Licensing System and Registry";
(3) Making conforming amendments to effectuate the reduction of the time limit (from six months to thirty days) for an applicant for licensure under the Secure and Fair Enforcement for Mortgage Licensing Act to demonstrate continued efforts to complete the licensing application;
(4) Changing the effective date to July 1, 2050, to facilitate further discussion on this measure; and
(5) Making technical nonsubstantive amendments for the purposes of clarity, consistency, 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 H.B. No. 2501, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2501, H.D. 1, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DAVID Y. IGE, Chair