(a) Any distressed property consultant shall keep, for a period of twenty-four months from the date the record is created, the following records:

contract signature

Need help reviewing a real estate contract?
Have it reviewed by a lawyer, get answers to your questions and move forward with confidence.
Connect with a lawyer now

Terms Used In Hawaii Revised Statutes 480E-9.5

  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • Distressed property: means any residential real property that:

    (1) Is in foreclosure or at risk of foreclosure because payment of any loan that is secured by the residential real property is more than sixty days delinquent;

    (2) Had a lien or encumbrance charged against it because of nonpayment of any taxes, lease assessments, association fees, or maintenance fees;

    (3) Is at risk of having a lien or encumbrance charged against it because the payments of any taxes, lease assessments, association fees, or maintenance fees are more than ninety days delinquent;

    (4) Secures a loan for which a notice of default has been given;

    (5) Secures a loan that has been accelerated; or

    (6) Is the subject of any solicitation, representation, offer, agreement, promise, or contract to perform any mortgage assistance relief service. See Hawaii Revised Statutes 480E-2

  • Distressed property consultant: means any person who performs or provides, or attempts to perform or provide, or who arranges for others to perform or provide, or who assists others to perform or provide, or who makes any solicitation, representation, or offer to perform or provide, any mortgage assistance relief service. See Hawaii Revised Statutes 480E-2
  • Material: means likely to affect a consumer's choice of, or conduct regarding, any mortgage assistance relief service. See Hawaii Revised Statutes 480E-2
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage assistance relief service: means any service, plan, or program that is offered or provided to the consumer in exchange for consideration and is represented, expressly or by implication, to assist or attempt to assist the consumer with any of the following:

    (1) Stopping, preventing, or postponing the loss of any residential real property, whether by mortgage or deed or trust foreclosure sale or repossession, or otherwise saving any consumer's residential real property from foreclosure or repossession;

    (2) Stopping, preventing, or postponing the charging of any lien or encumbrance against any residential real property or reducing or eliminating any lien or encumbrance charged against any residential real property for the nonpayment of any taxes, lease assessments, association fees, or maintenance fees;

    (3) Saving the owner's property from foreclosure or loss of home due to nonpayment of taxes;

    (4) Negotiating, obtaining, or arranging any modification of any term of a residential loan, including a reduction in the amount of interest, principal balance, monthly payments, or fees;

    (5) Negotiating, obtaining, or arranging any extension of the period of time within which the consumer may:

    (A) Cure the default on a residential loan;

    (B) Reinstate the residential loan;

    (C) Redeem any residential real property; or

    (D) Exercise any right to reinstate a residential loan or redeem a residential real property;

    (6) Negotiating, obtaining, or arranging, with respect to any residential real property:

    (A) A short sale;

    (B) A deed-in-lieu of foreclosure; or

    (C) Any other disposition of the property other than a sale to a third party who is not the residential loan holder;

    (7) Obtaining any forbearance or modification in the timing of payments from any residential loan holder or servicer;

    (8) Obtaining any forbearance from any beneficiary or mortgagee, or any relief with respect to a tax sale of any residential real property;

    (9) Obtaining any waiver of an acceleration clause or balloon payment contained in any promissory note or other contract secured by a mortgage on any residential real property or contained in the mortgage;

    (10) Obtaining any extension of the period within which the owner may reinstate the owner's rights with respect to the owner's property;

    (11) Obtaining a loan or advance of funds while the consumer is in foreclosure or at risk of foreclosure due to nonpayment of any obligation related to a residential real property, including but not limited to one or more loans, taxes, lease assessments, association fees, or maintenance fees;

    (12) Obtaining a loan or advance of funds during any post-tax sale redemption period;

    (13) Considering or deciding whether a consumer should continue making payments on any loan, taxes, lease assessments, association fees, or maintenance fees or any other obligation related to a residential real property;

    (14) Exercising any cure of default;

    (15) Avoiding or ameliorating the impairment of the property owner's credit resulting from the recording or filing of a notice of default or the conduct of a foreclosure sale or tax sale;

    (16) Drafting, preparing, performing, creating, or otherwise obtaining a forensic loan audit, a forensic securitization audit, or any other type of audit, report, summary, affidavit, or declaration involving an opinion, determination, or analysis of whether a lending party has an enforceable mortgage or lien, predicated upon claims that a lending party that is a party to a pooling and service agreement failed to adhere to the terms of that agreement, or that errors occurred after the signing of the mortgage loan, or disputing whether the lending party is the holder of the promissory note, or any argument that the lending party has failed to comply with federal or state mortgage lending laws;

    (17) Drafting, preparing, performing, creating, or otherwise obtaining any documentation used or intended to be used to advance any legal theory in defense of a foreclosure or ejectment action, regardless of any disclaimer as to providing legal advice; or

    (18) Understanding any legal theory that may be used in defense of a foreclosure or ejectment action, regardless of any disclaimer as to providing legal advice. See Hawaii Revised Statutes 480E-2

  • property owner: means the owner of any distressed property. See Hawaii Revised Statutes 480E-2
(1) All contracts or other agreements between the distressed property consultant and any consumer for any mortgage assistance relief service;
(2) Copies of all written communications between the distressed property consultant and the distressed property owner or owners occurring prior to the date on which the property owner or owners entered into an agreement with the distressed property consultant for any mortgage assistance relief service;
(3) Copies of all documents or telephone recordings created in connection with compliance with subsection (b);
(4) All files containing the distressed property owner’s or owners’ names and phone numbers, dollar amounts paid, and descriptions of mortgage assistance relief services purchased, to the extent the distressed property consultant keeps such information in the ordinary course of business;
(5) Copies of all materially different sales scripts, training materials, commercial communications, or other marketing materials, including websites and weblogs, for any mortgage assistance relief service; and
(6) Copies of the documentation provided to the consumer as specified in § 480E-3.
(b) A distressed property consultant shall also:

(1) Take reasonable steps sufficient to monitor and ensure that all employees and independent contractors comply with this chapter. Such steps shall include the monitoring of communications directed at specific consumers and shall also include, at a minimum, the following:

(A) If the distressed property consultant is engaged in the telemarketing of mortgage assistance relief services, performing random, blind recording and testing of the oral representations made by individuals engaged in sales or other customer service functions;
(B) Establishing a procedure for receiving and responding to any and all complaints regarding or relating to the distressed property consultant or mortgage assistance relief service, or both; and
(C) Ascertaining the number and nature of any complaints regarding transactions in which any employee or independent contractor, or both, is involved;
(2) Investigate promptly and fully each consumer complaint received;
(3) Take corrective action with respect to any employee or independent contractor whom the distressed property consultant determines is not complying with this chapter, which action may include training, disciplining, or terminating the individual; and
(4) Maintain any information and material necessary to demonstrate the distressed property consultant’s compliance with this subsection.
(c) A distressed property consultant may keep the records required by this section in any form, and in the same manner, format, or place as it keeps such records in the ordinary course of business.

  Previous
Next  
 Chapter 480E Contents