Hawaii Servicing Reference Guide
- Kacey Olson
Owned by Kacey Olson
| Citation | Topic | Requirement |
| Mortgage Servicers Act / Haw. Rev. Stat. Ann. §454M-5.5(a) | Acknowledgment of Request for Loss Mitigation | Unless a longer time is permitted under the Home Affordable Modification Program, within 10 business days of receiving a request from a borrower or the borrower's authorized representative for one or more loss mitigation options, the mortgage servicer must transmit a written acknowledgment of the request to the borrower and, if applicable, to the authorized representative. The acknowledgment must identify with specificity any information needed from the borrower for the mortgage servicer to review the borrower's loss mitigation option request. |
| Mortgage Foreclosures / Haw. Rev. Stat. Ann. §667-32(a) | Affidavit of Foreclosing Mortgagee | After the public sale is held, the foreclosing mortgagee must sign an affidavit under penalty of perjury: (1) stating that the power of sale foreclosure was made pursuant to the power of sale provision in the mortgage; (2) stating that the power of sale foreclosure was conducted as required by the alternate power of sale foreclosure process; (3) summarizing what was done by the foreclosing mortgagee; (4) attaching a copy of the recorded notice of default and intention to foreclose; and (5) attaching a copy of the last public notice of the public sale. (6) referencing the document number of the affiliate statement filed at the bureau of conveyances; and (7) stating the date of filing and any relevant referencing information assigned by the Division of Financial Institutions to the statement filed with the Commissioner of Financial Institutions of the mortgage servicer affiliate statement. |
| Mortgage Servicers Act / Haw. Rev. Stat. Ann. §454M-5(e) | Annual Escrow Account Statement | At least once annually, within 30 days of the end of the computation year, a mortgage servicer must deliver to the borrower a plain language statement of the borrower's account showing the unpaid principal balance of the mortgage loan at the end of the immediately preceding 12-month period, the interest paid during that period, and the amounts deposited into escrow and disbursed from escrow during the period. The annual escrow statement may be provided separately from the annual statement showing the unpaid principal and interest paid. The format and content of the annual escrow statement must comply with the Real Estate Settlement Procedures Act, including Regulation X, 12 C.F.R. §1024.17. |
Buyer's Choice of Title Insurer and Escrow Agent | (a) In connection with a judicial foreclosure or foreclosure by power of sale of residential property improved by four or fewer dwelling units, no foreclosing mortgagee or mortgagee who acquires the property through a foreclosure proceeding shall require, directly or indirectly, as a condition of selling the property, that the buyer purchase an owner's title insurance policy covering the property or escrow service in connection with the sale of the property from a particular title insurer or escrow depository. This section shall not prohibit a buyer from agreeing to accept the services of a title insurer or an escrow depository recommended by the foreclosing mortgagee or mortgagee who acquires the property through the foreclosure proceeding if written notice of the right to make an independent selection of those services is first provided to the buyer by the foreclosing mortgagee or mortgagee who acquires the property through the foreclosure proceeding. | |
| Mortgage Foreclosures / Haw. Rev. Stat. Ann. §667-5.5 | Common Interest Development Notification | Any person who forecloses on a property within a planned community association, a condominium apartment, or an apartment in a cooperative housing project must also notify, by way of registered or certified mail, the board of directors of the planned community association, the association of apartment owners of the condominium, or the cooperative housing project in which the property to be foreclosed is located of the following: (1) the foreclosure at the time foreclosure proceedings are begun; and (2) any election by an owner-occupant of the property that is the subject of the foreclosure to participate in the mortgage foreclosure dispute resolution program. The notice, at a minimum, must identify the property, condominium apartment, or cooperative apartment which is the subject of the foreclosure and identify the name or names of the person or persons bringing foreclosure proceedings. This notice requirement does not apply when the planned community association, condominium association, or cooperative housing corporation is a party in a foreclosure action. |
| Mortgage Foreclosures / Haw. Rev. Stat. Ann. §667-32(a) | Confirmation of Sale Affidavit | After the public sale is held, the foreclosing mortgagee must sign an affidavit under penalty of perjury: (1) stating that the power of sale foreclosure was made pursuant to the power of sale provision in the mortgage; (2) stating that the power of sale foreclosure was conducted as required by the alternate power of sale foreclosure process; (3) summarizing what was done by the foreclosing mortgagee; (4) attaching a copy of the recorded notice of default and intention to foreclose; (5) attaching a copy of the last public notice of the public sale; (6) referencing the document number of the affiliate statement filed at the bureau of conveyances; and (7) stating the date of filing and any relevant referencing information assigned by the Division of Financial Institutions to the statement filed with the Commissioner of Financial Institutions of the mortgage servicer affiliate statement. |
| Haw. Rev. Stat. Ann. §667-24(a) | Curing Default | (a) If the default is cured as required by the notice of default and intention to foreclose, or if the parties have reached an agreement to resolve the nonjudicial foreclosure, the foreclosing mortgagee shall rescind the notice of default and intention to foreclose. Within fourteen days of the date of the cure or an agreement to resolve the nonjudicial foreclosure, the foreclosing mortgagee shall so notify any person who was served with the notice of default and intention to foreclose. If the notice of default and intention to foreclose was recorded, a release of the notice of default and intention to foreclose shall be recorded. |
| Haw. Rev. Stat. Ann. §667-31(b) | Distribution of Proceeds of Sale - Non-Judicial | (b) From the sale proceeds, after paying all liens and encumbrances in the order of priority as a matter of law, after paying the foreclosing mortgagee's attorney's fees and costs, after paying the fees and costs of the power of sale foreclosure, and after paying the moneys owed to the foreclosing mortgagee, the balance of the sale proceeds shall be distributed by the foreclosing mortgagee to junior creditors having valid liens on the mortgaged property in the order of their priority and not pro rata. Any remaining surplus after payment in full of all valid lien creditors shall be distributed to the mortgagor. |
| Haw. Rev. Stat. Ann. §667-76(a) | Foreclosure Notice Filing (and Fee) - Non-Judicial | (a) Within three days after a mortgagee serves a foreclosure notice on an owner-occupant pursuant to section 667-22, the mortgagee shall file the foreclosure notice with the department and pay a filing fee of $250, which shall be deposited into the mortgage foreclosure dispute resolution special fund established under section 667-86. |
| Mortgage Servicers Act / Haw. Rev. Stat. Ann. §454M-5(b) | Licensing/Complaint Disclosure | At the time a servicer accepts assignment of servicing rights for a mortgage loan, the servicer must disclose to the borrower in addition to the federal disclosures a notice in a form and content acceptable to the Commissioner that the servicer is licensed by the Commissioner and complaints about the servicer may be submitted to the Commissioner. |
| Haw. Rev. Stat. Ann. §667-25(a) | Manner of Sale - Non-Judicial | (a) The public sale of the mortgaged property shall take place on the later of the following: (1) At least sixty days after the public notice of the public sale is distributed under section 667-27; or (2) At least fourteen days after the date of the publication of the third public notice advertisement under section 667-27. |
| Mortgage Foreclosures / Haw. Rev. Stat. Ann. §667-22 | Notice of Default and Intention to Foreclose | The requirements of this notice are many, see citation. |
| Mortgage Foreclosures / Haw. Rev. Stat. Ann. §667-75 | Notice of Dispute Resolution Availability | A foreclosure notice served must include notice that the mortgagee is required, at the election of an owner-occupant, to participate in the mortgage foreclosure dispute resolution program pursuant to this part to attempt to avoid foreclosure or to mitigate damages where foreclosure is unavoidable. The notice must be printed in not less than 14-point font and include: (1) the name and contact information of the mortgagor and the mortgagee; (2) the subject property address and legal description, including tax map key number and the certificate of title or transfer certificate of title number if registered in the land court; (3) the name and contact information of a person or entity authorized to negotiate a loan modification on behalf of the mortgagee; (4) a statement that the mortgagor must consult with an approved housing counselor or an approved budget and credit counselor at least 30 days prior to the first day of a scheduled dispute resolution session; (5) contact information for all local approved housing counselors; (6) contact information for all local approved budget and credit counselors; (7) a statement that the mortgagor electing to participate in the mortgage foreclosure dispute resolution program must provide a certification under penalty of perjury to the Department that the mortgagor is an owner-occupant of the subject property, including supporting documentation; (8) a general description of the information that an owner-occupant electing to participate in the mortgage foreclosure dispute resolution program is required to provide to participate in the program; and(9)a statement that the owner-occupant must elect to participate in the mortgage foreclosure dispute resolution program no later than 30 days after the Department's mailing of the notice or the right will be waived. |
| Mortgage Servicers Act / Haw. Rev. Stat. Ann. §454M-5.5(a) | Notice of Loan Modification Determination | Within 30 days of receiving all required documentation from the borrower and third parties, unless a shorter time is required under applicable state or federal rules or regulations pertaining to mortgage servicing or under guidance or directives implementing the Home Affordable Modification Program, a mortgage servicer must complete its evaluation of the borrower's eligibility for a loan modification or any other loss mitigation option requested by the borrower and advise the borrower, and if applicable, the borrower's authorized representative, in writing of the mortgage servicer's determination. |
| Mortgage Foreclosures / Haw. Rev. Stat. Ann. §667-27 | Notice of Public Sale | There are too many requirements regarding the Notice of Public Sale under the non-judicial process to list here, please see citation for specifics. |
| Mortgage Servicers Act / Haw. Rev. Stat. Ann. §454M-5(f) | Payment Reminder Notice | Except where inconsistent with the automatic stay provisions of the United States bankruptcy code, a mortgage servicer must send a payment reminder notice to a borrower at the borrower's last known address no later than 17 days after the payment becomes due and remains unpaid; provided that a mortgage servicer is not required to send a separate payment reminder notice for each consecutive month in which the mortgage loan continues to remain unpaid. |
| Mortgage Servicers Act / Haw. Rev. Stat. Ann. §454M-5(g) | Payoff Statement | A mortgage servicer must provide a clear, understandable, and accurate statement of the total amount that is required to pay off the mortgage loan as of a specified date, within a reasonable time, but in any event no more than 5 business days after receipt of a request from the borrower or borrower's authorized representative. |
| Haw. Rev. Stat. Ann. §667-56 | Post Sale Deed | Prohibited conduct. It shall be a prohibited practice for any foreclosing mortgagee to engage in any of the following practices: (4) Delaying the delivery of the recorded, conformed copy of the conveyance document to a bona fide purchaser who purchases in good faith for more than sixty days after the completion of the public sale. |
| Mortgages of Real Property of Fixtures / Haw. Rev. Stat. Ann. §506-8 | Release of Assignment of Leases or Rents | If the debt secured by the mortgage is also secured by an assignment of the borrower's or mortgagor's interest in leases or rents to the mortgagee, then the mortgagee or record assignee shall also provide to the borrower or mortgagor, as applicable, a reassignment or release of the security interest upon full satisfaction and discharge of the secured debt. Must be provided within within sixty days from the date of a request made in writing by any party in interest, and sent by certified or registered mail to the mortgagee or record assignee at its last known address. |
| Mortgages of Real Property of Fixtures / Haw. Rev. Stat. Ann. §506-8 | Satisfaction of Mortgage | Within 60 days, the mortgagee of real property or the record assignee of a mortgage interest must provide to the mortgagor a release of mortgage upon full satisfaction of the mortgage and discharge of any secured debt. The instrument must be duly acknowledged, must sufficiently describe the mortgage that has been satisfied, and be recordable in the bureau of conveyances or office of the assistant registrar of the land court, or both, as appropriate. |
| Mortgage Servicers Act / Haw. Rev. Stat. Ann. §454M-5(b) | Schedule and Range of Fees | At the time a servicer accepts assignment of servicing rights for a mortgage loan, the servicer must disclose to the borrower in addition to the federal disclosures a schedule of the ranges and categories of the servicer's costs and fees for the servicer's servicing-related activities, which must comply with the Hawaii Mortgage Servicers Act and which may not exceed those reported to the Commissioner. |