Reps. Johanson and Ward Address SB 2394 – Lending Practices

Stand. Comm. Rep. No. 1689-12 S.B. No. 2394, S.D. 1, H.D. 3 RELATING TO CONSUMER PROTECTION.(Consumer Protection; Lending Practices; Military Members; Distressed Residential Properties Program) AS AMENDED, PASS THIRD READING

Dept. of the AG: Had concerns about bill, and asked for amendments. (1) Declaration of public purpose to use public monies for this plan. (2) Condemnation is normally associated with eminent domain. (3) Bill seeks to transfer into special fund the money from multistate settlement. Concerned about this. If bill were to try to take money, would conflict with consent judgment. (The HD3 attempts to address these concerns, but its effectiveness on the first two concerns is debatable.)
HI Association of Realtors: “We are concerned about the impact this measure will have on Hawaii’s bond rating. Specifically, the provision that the Hawai’i Housing Finance and Development Corporation (HHFDC) issue …revenue bonds, which is exempt from the debt ceiling and taxes, may impact Hawaii’s bond rating and needs to be carefully considered.
HI Financial Services Association: Bill is “short on sound reasons for the HHFDC to purchase (and in some instances force the purchase of)…a problematic loan and then make a new loan on that property to bailout that same homeowner.”

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Excerpt from Capitol TV