Bill Text: HI HB2033 | 2012 | Regular Session | Introduced

Hawaii House Bill 2033 (Prior Session Legislation)

HI State Legislature page for HB2033

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

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.

"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.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.