Bill Text: HI HB2033 | 2012 | Regular Session | Introduced
Bill Title: Mortgage Collection Practices
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2012-01-25 - (H) The committee(s) on CPC/JUD recommend(s) that the measure be deferred. [HB2033 Detail]
Download: Hawaii-2012-HB2033-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2033 |
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TWENTY-SIXTH LEGISLATURE, 2012 |
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STATE OF HAWAII |
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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.
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INTRODUCED BY: |
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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.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
