Bill Text: HI SB2121 | 2024 | Regular Session | Amended
Bill Title: Relating To The Mortgage Loan Recovery Fund.
Spectrum: Strong Partisan Bill (Democrat 10-1)
Status: (Introduced - Dead) 2024-02-14 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2121 Detail]
Download: Hawaii-2024-SB2121-Amended.html
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THE SENATE |
S.B. NO. |
2121 |
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THIRTY-SECOND LEGISLATURE, 2024 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE MORTGAGE LOAN RECOVERY FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 454F-41, Hawaii Revised Statutes, is amended to read as follows:
"§454F-41 Mortgage loan recovery fund; use of fund; fees. (a) The commissioner shall establish and maintain a fund that shall be known as the mortgage loan recovery fund, from which any person aggrieved by an act, representation, transaction, or conduct of a mortgage loan originator licensee or a mortgage loan originator company licensee involving fraud, misrepresentation, or deceit in violation of this chapter may recover, by final judgment of the circuit court or district court of the county where the violation occurred, an amount of ten per cent of the residential mortgage loan, but not more than $150,000, including court costs and fees as set by law and reasonable attorney fees as determined by the court, for damages sustained by the fraud, misrepresentation, or deceit of a mortgage loan originator licensee or a mortgage loan originator company licensee.
In addition to application fees and any fees required by NMLS, a mortgage loan originator licensee shall pay to the division a mortgage loan recovery fund fee in the sum of $200.
Upon application for renewal of a license under this chapter,
a mortgage loan originator licensee shall pay to the division, in addition to
the licensee's license renewal fee and fees required by NMLS, a mortgage loan
recovery fund fee in
the sum of $100.
The $100 mortgage loan recovery fund fee collected pursuant to this subsection shall be refundable upon the denial of a license renewal by the commissioner.
(b) When the mortgage loan recovery fund attains a funding level of $750,000, the commissioner may make a finding to adjust the fees payable to the fund or may determine that payments made by mortgage loan originator licensees shall cease. If acceptance of payments is ceased, it shall remain ceased until the funding level falls below $750,000. If the funding level falls below $250,000 after the first five years of the establishment of the fund, the commissioner may adjust the fees to a reasonable level to attain a funding level of $750,000.
(c) The commissioner or the commissioner's
designee, as the manager of the mortgage loan recovery fund, shall be
authorized to expend moneys in the mortgage loan recovery fund to:
(1) Retain private legal counsel to represent the commissioner or the division in any action that involves or may result in payment from the mortgage loan recovery fund;
(2) Retain a certified public accountant for accounting and auditing of the mortgage loan recovery fund;
(3) Employ necessary personnel, not subject to chapter 76, to assist the commissioner in exercising the commissioner's powers and duties with respect to the mortgage loan recovery fund; and
(4) Retain a consultant to recover and collect any payments from the mortgage loan recovery fund, plus interest from the judgment debtor.
(d) Each fiscal year, the division may use up to
$ from the mortgage
loan recovery fund's surplus balance exceeding $1,500,000 to:
(1) Train the division's staff,
including the division's attorneys, in the residential mortgage industry;
(2) Provide training for the licensees;
(3) Publish educational materials for
licensees relating to licensure under this chapter; and
(4) Provide educational sessions and publish educational materials for consumers relating to residential mortgage loans."
SECTION 2. Section 454F-42, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:
"(f) Notwithstanding
any other provision, the liability of the mortgage loan recovery fund shall not
exceed the sum of [$100,000] $150,000 against any one licensee."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
Report Title:
Department of Commerce and Consumer Affairs; Division of Financial Institutions; Mortgage Loan Recovery Fund; Mortgage Loan Originator Licensee
Description:
Authorizes
consumers aggrieved by the conduct of a mortgage loan originator licensee to
recover from the Mortgage Loan Recovery Fund.
Allows for excess moneys in the Mortgage Loan Recovery Fund to be used
for certain training and educational purposes.
Increases to $150,000 the restitution available to consumers from the Mortgage
Loan Recovery Fund. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
