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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