Here is a quick update on the licensed lender issue. We had a very short hearing at the Senate Committee on Economic Development last evening. Although it was to begin at 4:30, the Senate scheduled a floor session for that time so we waited until about 5PM. Then, three of five senators had to leave so the hearing was abbreviated. BTW, thanks to Tom Dailey who offered to drive up from Bennington; I’m glad he didn’t as it was hardly worth the effort. Anyway, I was able to briefly present the problems as you have been discussing them on the list serve. I was followed by Tom Candon of BISHCA who was accompanied by Steve Knudson. Their main point was compliance with the SAFE Act and any state deviation would result in federal licensing of mortgage servicers. The committee seems anxious to solve the problem, maybe trying to be a test case or maybe just taking the gamble that nothing bad will happen. They are definitely interested and will continue to work on this. Steve said that many of the problems you are facing come from a lack of understanding the current law! So here’s where things ended: I was asked and am now asking everyone one of you to share your experiences with failed conveyances or delayed conveyances with resulting increased costs because of the current law. I need to collect your stories this week or at the latest early next week; share them with BISHCA; and return to committee during the week after the Town Meeting break. Feel free to email me directly (bpaolini@vtbar.org).


Today began with the Senate Judiciary Committee returning yet again to S. 38, the collateral consequences bill. Since its last hearing, the Office of Professional Regulation at the Secretary of State’s Office has voiced some concerns that licensing boards may lose some of their authority. There is also controversy over who should be delivering information to a defendant. The bill leaves that to the prosecutors; they objected arguing that it would be giving advice to an opposing party. So today’s draft asks the court to do it; they now object! The Attorney General’s Office appeared today and objected to being named as the host of a website where all collateral consequences would be listed; their objection- increased workload. They argued further that it will increase the workload and the number of hearings for the courts. Committee chair Dick Sears will return to consideration of the bill after the Town Meeting recess, most likely on Wednesday, March 2nd. One of the committee’s issues to resolve will be the effective date of the bill; there may be talk of delaying it a year. Much more to come on this.
I just returned from the House Appropriations Committee where the Chief Justice, Justice Dooley and Bob Greemore presented the judiciary’s FY12 budget. they were well received. I’ll post more detail on that tomorrow.