HOUSE OF REPRESENTATIVES

H.B. NO.

2033

TWENTY-SIXTH LEGISLATURE, 2012

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO MORTGAGE COLLECTIONS.

 

 

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

 


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

"480D-    Mortgage collection firms; prohibited practices; penalties and remedies. (a) A mortgage collection firm shall not:

(1) Offer evidence in a residential mortgage foreclosure proceeding under chapter 667 that the firm knows to be false;

(2) Knowingly breach a bona fide mortgage modification agreement; or

(3) Notwithstanding any law to the contrary, retake possession, without judicial process, of residential real property for a party filing a mortgage foreclosure action upon the property, unless the property is abandoned for more than thirty days.

(b) A violation of subsection (a) is an unfair or deceptive act or practice in the conduct of any trade or commerce within the meaning of section 480-2. A mortgage collection firm that violates subsection (a) is subject to the penalties and remedies provided in sections 480D-4 and 480D-5, including the award of reasonable attorney's fees and costs.

(c) For purposes of this section:

"Mortgage collection firm" means:

(1) An attorney or law firm engaged to represent a party filing a residential mortgage foreclosure action; or

(2) A person engaged in debt collection services for a residential mortgage loan.

"Mortgage modification agreement" means a written agreement to modify the interest rate or other terms of a residential mortgage to avoid default of the mortgage or foreclosure proceedings."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Mortgage Collection Practices

 

Description:

Prohibits mortgage collection firms from certain acts, such as knowingly breaching a bona fide mortgage modification agreement. Provides penalties.

 

 

 

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