Report Title:

Mortgage Broker Regulation; Transfer of Oversight

Description:

Transfers responsibility for oversight of the mortgage broker profession within DCCA from the professional and vocational licensing division to the division of financial institutions. (SD1)

THE SENATE

S.B. NO.

770

TWENTY-THIRD LEGISLATURE, 2005

S.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO MORTGAGE BROKERS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The purpose of this Act is to transfer the oversight of mortgage brokers and solicitors within the department of commerce and consumer affairs from the professional and vocational licensing division to the division of financial institutions.

SECTION 2. Section 454-1, Hawaii Revised Statutes, is amended by amending the definition of "mortgage commissioner" or "commissioner" to read as follows:

""Mortgage commissioner" or "commissioner" means the [director of commerce and consumer affairs.] commissioner of financial institutions of this State."

SECTION 3. Section 454-3, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (b) to read

"(b) No mortgage broker or mortgage solicitor license shall be granted to any person who is not eighteen years of age or older. If the applicant is a person other than an individual, no license shall be granted unless the applicant first registers to do business in this State with the [business registration division of the department of commerce and consumer affairs.] commissioner."

2. By amending subsection (e) to read:

"(e) All fees shall be established and adopted by the [director] commissioner in accordance with chapter 91 and shall be deposited into the compliance resolution fund established pursuant to section 26-9(o). Failure of any mortgage broker or mortgage solicitor to pay the biennial renewal fee on or before December 31 of an even-numbered year shall constitute an automatic forfeiture of the license. The forfeited license may be restored; provided that application for restoration is made within six months of the forfeiture and a penalty fee is paid in addition to the delinquent license fee. A licensee who fails to restore a license as provided in this subsection shall apply as a new applicant."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2006.