Feb

10

State-Federal Mortgage Servicing Settlement to be Discussed

Commerce & Consumer Protection / Press Releases

 

HONOLULU – In reaction to a landmark state-federal deal with the nation’s five largest mortgage servicers over foreclosure abuses and fraud during the housing crisis, the Senate Committee on Commerce and Consumer Protection along with the House Committee on Consumer Protection and Commerce will be holding an informational briefing to discuss the settlement terms and its conditions.  The briefing will be held on Tuesday, February 14, 2012 at 10am in conference room 229, at the State Capitol.

Attorney General David M. Louie, this past Thursday, formally joined attorneys general in 48 other states, including the District of Columbia, in a $25 billion deal with Bank of America, JP Morgan Chase, Wells Fargo, Citigroup and Ally Financial.  Oklahoma did not join the settlement and will not receive any money.

Hawaii’s estimated share of the settlement is over $71 million. Under the agreement, $8.2 million will go to the State to help address future mortgage loan servicing practices, such as counseling and mediation programs and grants. Hawaii homeowners will receive $63 million from loan term modifications and other direct relief.  From the $63 million, $3.2 million will be paid directly to homeowners who were improperly foreclosed upon between January 1, 2008 and December 31, 2011. Those who suffered servicing abuse could apply and would qualify for up to $2,000 in cash payments.

The agreement forces an overhaul to mortgage servicing practices.  The settlement imposes new requirements that will address robo signing abuses, document deficiencies, dual tracking, relationships with active military personnel, forced placed insurance, technology systems, loss mitigations and servicing.

“This really is a landmark settlement.  Through some of the laws Congress and the Legislature have passed, and now with the vigor of the Attorneys General and our AG in particular a framework to protect the interest of Hawaii homeowners has been established.  There are going to be resources coming to this State to help homeowners and not just the ones who have been wrongly foreclosed but folks into the future.  I look forward to working with the Department of Commerce and Consumer Affairs and the Attorney General in tweeking Act 48, which this landmark settlement nicely dovetails, “  said Senator Rosalyn Baker, chair of the Senate Committee on Commerce and Consumer Protection.   She introduced Senate Bill 651 during the 2011 legislative session, which the governor signed into law (Act 48) last May.

Act 48 aims to reform the foreclosure process by implementing additional protections for individuals facing foreclosure or who are at-risk of foreclosure. Among other things, the measure establishes a temporary mortgage foreclosure dispute resolution program and authorizes conversion from nonjudicial to judicial foreclosure.

To view video click here.

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Jan

24

Discussion of the Mortgage Foreclosure Task Force 2012 Report

Articles / Commerce & Consumer Protection

On January 19, 2012, the Mortgage Foreclosure Task Force presented its report to the Senate Committee on Commerce & Consumer Protection and the House Committee on Consumer Protection & Commerce during a joint informational briefing.

The task force was created by the Legislature in 2010 by Act 162 to conduct an extensive analysis of factors affecting mortgage foreclosures in the state and to provide recommendations to the Legislature. The result of their work assisted in the 2011 enactment of Act 48 (Senate Bill 651), a measure that  reforms the foreclosure process by implementing additional protections to individuals facing foreclosure or at-risk of foreclosure.

During the joint informational briefing, the legislative committees were able to hear from the task force about refining the requirements and procedures specified in Act 48. The task force also looked ways that the dispute resolution and the counseling provisions in the law can work better for consumers.

Senate Committee on Commerce & Consumer Protection Chair Roz Baker explained that the committee will be looking at pieces of legislation and will introduce measures to implement the Mortgage Foreclosure Task Force’s recommendations. In conjunction with the tasks force’s recommendations, the committee will also be looking at statutes and procedures relating to lien foreclosures by condominiums and homeowner associations.

Highlights from the report’s final recommendations included include:

  • Make permanent the process under Act 48 for converting nonjudicial foreclosures of residential property into judicial foreclosures;
  • Address practical challenges in the operation of the mortgage foreclosure dispute resolution program;
  • Establish an alternate power of sale foreclosure process specifically for condominium and other homeowner associations;
  • Provide planned community associations organized under chapter 421J, Hawaii Revised Statutes, with the same options as condominium associations with regard to association liens for assessments and the collection of unpaid assessments from tenants or rental agents;
  • Place time limits on condominium and other homeowner association liens for assessments, and prohibit such liens arising solely from fines, penalties, or late fees;
  • Provide specific language explaining the foreclosure process for the public information notice that must be distributed by persons intending to use the power of sale foreclosure process under part II of chapter 667, Hawaii Revised Statutes; and
  • Clarify, improve, and correct errors in the provisions of Act 48, Session Laws of Hawaii 2011.

The complete Mortgage Foreclosure Task Force report is available for download at: http://lrbhawaii.info/reports/legrpts/2012/mort.pdf.

 To view video click here.

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Oct

04

State Launches Mortgage Foreclosure Dispute Resolution Program

Articles / Commerce & Consumer Protection

On October 3, 2011, the Hawai’i State Department of Commerce and Consumer Affairs (DCCA) held a press conference to unveil the Mortgage Foreclosure Dispute Resolution (MFDR) Program.

The MFDR program is established under Act 48 (Senate Bill 651) and is designed to offer owner-occupants of residential property in non-judicial foreclosure the opportunity to meet directly with their lenders to modify their loans or work out an alternative to the foreclosure process.

Sen. Roz Baker, Chair of the Senate Committee on Commerce and Consumer Protection, and Rep. Bob Herkes, Chair of the House Committee on Consumer Protection and Commerce, attended the press conference. Both lawmakers’ committees worked on Senate Bill 651. Representatives from Faith Action for Community Equality (FACE) also joined DCCA officials at the press conference.

The program will be funded by fees paid by participating lenders and owner-occupants. Under Act 48, MFDR was required to commence on October 1, 2011, and will continue until September 30, 2014.

Starting on October 3, 2011, lenders may begin submitting non-judicial foreclosure notice filings through the program’s website, http://mfdr.ehawaii.gov. To use the electronic filing system, a required subscriber account may be obtained by registering at http://portal.ehawaii.gov/subscriber-services.html.

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Jun

27

Mortgage Briefing to be Held at State Capitol

Articles / Commerce & Consumer Protection

Honolulu — The Hawaii State Senate and House of Representative Committees on Consumer Protection and Commerce will hold a joint informational briefing on Wednesday, June 29, 2011, at the State Capitol regarding the new home mortgage foreclosure law (Act 48) passed in May.

The briefing will be held in Conference Room 325, located in the State Capitol, beginning at 1:00 p.m. The public is invited to attend.

“Assuring fairness and transparency in the mortgage foreclosure process is very important for so many families here in Hawaii,” said Senator Roz Baker, Chair of the Senate Committee on Commerce and Consumer Protection.  “We think Act 48, which was signed into law by the Governor on May 6, will help the situation for many of our homeowners.  The foreclosure issues are complex. Our intent is to share with the public the status of implementation of the new law and clarify any ambiguities in Act 48.”

Among the speakers who have been invited to participate in the session are:

The Hawaii Mortgage Foreclosure Task Force

The State Department of Commerce and Consumer Affairs

The State Judiciary

The State Attorney General’s Office

The Hawaii Banker’s Association

The Hawaii Financial Service’s Association

The Hawaii Association of Realtors

The Hawaii Land Title Association

The Legal Aid Society of Hawaii

Faith Action in Community Equity (FACE)

Kirk Caldwell, an attorney and former Mayor of Honolulu who specializes in Real Property

Ron Margolis, one of the isle’s best known foreclosure experts

Representatives from Condominium and/or Homeowner Associations

A question and answer will follow the presentations.

Persons needing special assistance or auxiliary aids to attend the meeting should contact the Committee Clerk at 586-8400 at least 24 hours prior to the meeting to request arrangements for assistance.

For more information on Act 48:

http://www.capitol.hawaii.gov/session2011/lists/RptActs.aspx

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