Bill Text: HI SB3075 | 2024 | Regular Session | Introduced
Bill Title: Relating To The Mortgage Loan Recovery Fund.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-26 - Referred to CPN, WAM. [SB3075 Detail]
Download: Hawaii-2024-SB3075-Introduced.html
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THE SENATE |
S.B. NO. |
3075 |
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THIRTY-SECOND LEGISLATURE, 2024 |
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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) On an annual basis, the division may apply up
to $50,000 of moneys accumulated in the mortgage recovery fund in excess of
$1,500,000 for:
(1) Training of the division and its
attorneys in the area relating to the residential mortgage industry;
(2) Expenses of the division to provide
training for the licensees;
(3) Publishing educational materials for
licensees relating to licensure under this chapter; and
(4) Providing educational sessions and publishing 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, upon its approval, shall take effect on July 1, 2024.
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INTRODUCED BY: |
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BY REQUEST |
Report Title:
Mortgage Loan Recovery Fund; Mortgage Loan Originator Licensee; Division of Financial Institutions
Description:
Clarifies the eligibility to recover from the Mortgage Loan Recovery Fund to include consumers aggrieved by the conduct of a mortgage loan originator licensee. Allows for the annual use of $50,000 of the fund for training the Division of Financial Institutions and its attorneys relating to the residential mortgage industry, providing training to licensees, developing educational materials for licensees in the area relating to licensure under this chapter, and educating the public in the area relating to residential mortgage loans. Increases the restitution available to consumers from the Mortgage Loan Recovery Fund to the amount of $150,000, bringing consistency to sections 454F-41 and 454F-42, HRS.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
