Report Title:

Real property; mortgage foreclosure

 

Description:

Amends Act 137, Session Laws of Hawaii 2008, to include exemption language for certain professionals and agreements consistent with purpose of Act.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1384

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO REAL PROPERTY.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. Chapter 480E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"480E-A Exempt agreements and persons. This chapter shall not apply to:

(1) A person admitted to practice law in this State, while performing any activity related to the person's regular practice of law in this State;

(2) A person who holds or is owned as an obligation secured by a lien on any residence in foreclosure for which the person performed services in connection with the obligation or lien, if the obligation or lien did not arise as a result of a foreclosure reconveyance;

(3) A person doing business under any law of this State or the United States that regulates banks, trust companies, savings and loan associations, credit unions, insurance companies, title insurers, or insurance companies authorized to conduct business in this State, while the person performs services as part of the person's normal business activities;

(4) A person originating or closing a loan in a person's normal course of business if, as to that loan:

(A) The loan is subject to the requirements of the federal Real Estate Settlement Procedures Act, 12 U.S.C. 2601 to 2617; or

(B) With respect to any second mortgage or home equity line of credit, the loan is subordinate to and closed simultaneously with a qualified first mortgage loan under subparagraph (A) or is initially payable on the face of the note or contract to an entity included in paragraph (3);

(5) A judgment creditor of the homeowner, if the judgment creditor's claim accrued against a residence before the residence became a residence in foreclosure;

(6) A title insurer authorized to conduct business in this State while performing title insurance services;

(7) A person licensed as a mortgage broker or mortgage lender under chapter 454 while acting under the authority of that license;

(8) A person license as a real estate broker or real estate salesperson under chapter 467 while the person engages in any activity for which the person is licensed; or

(9) A nonprofit organization that offers counseling or advice to homeowners in foreclosure or loan default, if the organization is not directly or indirectly related to and does not contract for services with for-profit lenders or foreclosure purchasers."

SECTION 2. New statutory material is underscored.

SECTION 3. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 4. This Act shall take effect upon its approval.

 

 

INTRODUCED BY:

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