STAND. COM. REP. NO. 1952

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 989

       H.D. 1

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

 

Sir:

 

     Your Committee on Judiciary, to which was referred H.B. No. 989, H.D. 1, 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:

 

     (1)  Authorize the Commissioner of Financial Institutions to modify requirements and make new requirements in chapter 454M, Hawaii Revised Statutes, to implement changes and improvements made to the Nationwide Mortgage Licensing System; and

 

     (2)  Authorize the Commissioner of Financial Institutions to issue cease and desist orders against licensees and unlicensed persons and to enter into consent orders.

 

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs.

 

     Your Committee finds that the Nationwide Mortgage Licensing System (NMLS) is a web-based nationwide licensing system that streamlines workflows and communications for applicants, licensees, and the Department of Commerce and Consumer Affairs' Division of Financial Institutions.  Your Committee further finds that as the NMLS platform continues to evolve and allow for more efficient processing for both the states and industry, the Division of Financial Institutions requires the flexibility to allow the industry to use NMLS in the most efficient way possible.  Your Committee finds that currently, the Division is unable to accept through NMLS an electronic bond uploaded by an insurance carrier.  While your Committee understands the need for flexibility, the broad authority granted by this measure may not be necessary at this time.

 

     Accordingly, your Committee has amended this measure by:

 

     (1)  Removing language authorizing the Commissioner of Financial Institutions to modify, in whole or in part, by rule or order, any or all requirements of chapter 454M, Hawaii Revised Statutes, and language authorizing the establishment of new requirements, to the extent reasonably necessary to use NMLS;

 

     (2)  Allowing documents required to be filed in conjunction with mortgage servicing licensing to be filed electronically;

 

     (3)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

 

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 989, 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. 989, H.D. 1, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary,

 

 

 

________________________________

KARL RHOADS, Chair