STAND. COM. REP. NO. 858
RE: S.B. No. 1093
Honorable Donna Mercado Kim
President of the Senate
Twenty-Eighth State Legislature
Regular Session of 2015
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 1093, S.D. 1, 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 strengthen consumer protections in the servicing of residential mortgage loan payments.
Specifically, this measure clarifies and enhances mortgage servicer requirements, including:
(2) Crediting of payments;
(3) Fees for services;
(4) The handling of consumer complaints and inquiries;
(5) The provision of notices, disclosures, and loss mitigation options, and other duties to borrowers;
(7) Surety bonding; and
(8) Prohibited activities.
Your Committee received written comments in support of this measure from the Department of Commerce and Consumer Affairs.
Your Committee finds that mortgage servicers collect and process residential mortgage loan payments. Your Committee further finds that borrowers in Hawaii may find it difficult to obtain the attention they desire from mainland mortgage servicers that lack a physical presence in the State. This measure amends the Mortgage Servicers law under Chapter 454M, Hawaii Revised Statutes, to establish important requirements for mortgage servicers to meet the needs of consumers, including surety bonding, providing specific information to borrowers about their mortgages, and offering loss mitigation options to assist borrowers with avoiding foreclosure.
Your Committee has amended this measure by:
(1) Correcting a reference to the name of the Home Affordable Modification Program in the new definition of that term; and
(2) Making technical nonsubstantive amendments for 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 S.B. No. 1093, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1093, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
JILL N. TOKUDA, Chair