Report Title:

Mortgage Brokers; No Presence in the State

Description:

Requires mortgage brokers in the State to have a physical presence. Voids any mortgage made by a mortgage broker without a physical presence and allows the mortgagee to retain the funds without the obligation of repaying them.

HOUSE OF REPRESENTATIVES

H.B. NO.

1329

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO MORTGAGE BROKERS.

 

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

SECTION 1. Chapter 454, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"454- Mortgage brokers without a physical presence in the State, mortgages void. A mortgage entered into for real property located in the State by a mortgage broker who does not have a physical presence in the State, as required by section 454-3(i), is unenforceable by the mortgage broker or any person to whom the mortgage is subsequently sold or transferred. Any suit by the mortgage broker, or any person to whom the mortgage is subsequently sold or transferred, against the mortgagee for repayment of the mortgage is void as a matter of public policy."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

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

INTRODUCED BY:

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