480E-1 Purpose
480E-2 Definitions
480E-2.5 Mortgage rescue fraud; consumer education
480E-3 Distressed property consultant contract
480E-4 Right to cancel a distressed property consultant contract
480E-5 Cancellation of a distressed property consultant contract
480E-6 Distressed property conveyance contract
480E-7 Right to cancel a distressed property conveyance contract
480E-8 Cancellation of a distressed property conveyance contract
480E-9 Distressed property lease
480E-9.5 Recordkeeping and compliance requirements
480E-10 Prohibitions
480E-12 Criminal penalties
480E-13 Requirements for attorneys licensed in Hawaii
480E-14 Enforcement authority

Terms Used In Hawaii Revised Statutes > Chapter 480E

  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Applicant: means the person for whose use and benefit application for services or public assistance is made. See Hawaii Revised Statutes 346-1
  • Appraisal: A determination of property value.
  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • Consideration: means any payment or thing of value provided to an owner of a distressed property, including reasonable costs paid to independent third parties necessary to complete the distressed property conveyance or payment of money to satisfy a debt or legal obligation of an owner of the distressed property. See Hawaii Revised Statutes 480E-2
  • Continuance: Putting off of a hearing ot trial until a later time.
  • Contract: A legal written agreement that becomes binding when signed.
  • Conviction: A judgement of guilt against a criminal defendant.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • county: includes the city and county of Honolulu. See Hawaii Revised Statutes 1-22
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Department: means the department of human services. See Hawaii Revised Statutes 346-1
  • Dependent: A person dependent for support upon another.
  • Director: means the director of human services. See Hawaii Revised Statutes 346-1
  • 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
  • Distressed property consultant contract: means any agreement or obligation between an owner or agent of an owner of a distressed property and a distressed property consultant. See Hawaii Revised Statutes 480E-2
  • Distressed property conveyance: means the transfer of any interest in a distressed property effected directly or indirectly by or through a distressed property consultant. See Hawaii Revised Statutes 480E-2
  • Distressed property conveyance contract: means any agreement or obligation affecting a distressed property conveyance. See Hawaii Revised Statutes 480E-2
  • Distressed property lease: means any agreement or obligation regarding the lease or rental of a distressed property effected directly or indirectly by or through a distressed property consultant or distressed property purchaser. See Hawaii Revised Statutes 480E-2
  • Distressed property purchaser: means any person who acquires any interest in a distressed property directly or indirectly through a distressed property conveyance or distressed property conveyance contract. See Hawaii Revised Statutes 480E-2
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Fee simple: Absolute title to property with no limitations or restrictions regarding the person who may inherit it.
  • Felony: A crime carrying a penalty of more than a year in prison.
  • Financial assistance: means public assistance, except for payments for medical care, social service payments, transportation assistance, and emergency assistance under section 346-65, including funds received from the federal government. See Hawaii Revised Statutes 346-1
  • Forbearance: A means of handling a delinquent loan. A
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Fraud: Intentional deception resulting in injury to another.
  • Fully performed: means :

         (1)  In the case of relief requiring the consent of any lending party, the distressed property consultant or attorney has:

              (A)  Carried out and provided all of the services the distressed property consultant or attorney contracted to perform or represented would be performed; and

              (B)  Obtained from the lending party a written offer for mortgage assistance relief that the consumer has accepted by executing the written contract. See Hawaii Revised Statutes 480E-2

  • Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
  • Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lending party: means the person from whom mortgage assistance relief is sought and includes the residential loan holder or servicer. See Hawaii Revised Statutes 480E-2
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Material: means likely to affect a consumer's choice of, or conduct regarding, any mortgage assistance relief service. See Hawaii Revised Statutes 480E-2
  • Medical assistance: means payment for medical care or personal care services, including funds received from the federal government. See Hawaii Revised Statutes 346-1
  • Medical care: means all kinds of medical care, psychiatric care, dental care, and maternity care, including surgical care, hospital care, eye care (which includes optical appliances), materials, supplies, and all other appliances used in the care, treatment and rehabilitation of patients, and hospitalization. See Hawaii Revised Statutes 346-1
  • Medical institution: means a facility in which health care services are provided that also provides long-term care services at a nursing facility level of care for the purposes of dealing with medicaid liens in this chapter. See Hawaii Revised Statutes 346-1
  • Minor dependents: means dependents living in the home of a specified adult, as defined by rules, in which the adult is the primary caretaker and the dependent is under eighteen or if between eighteen and nineteen, enrolled full-time in a program of secondary or equivalent level vocational or technical school, and is expected to complete the program before reaching age nineteen. See Hawaii Revised Statutes 346-1
  • Misdemeanor: Usually a petty offense, a less serious crime than a felony, punishable by less than a year of confinement.
  • 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

  • Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: means any individual, partnership, corporation, limited liability company, association, or other group or entity, however organized. See Hawaii Revised Statutes 480E-2
  • Personal property: All property that is not real property.
  • Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
  • Probate: Proving a will
  • Probation: A sentencing alternative to imprisonment in which the court releases convicted defendants under supervision as long as certain conditions are observed.
  • property owner: means the owner of any distressed property. See Hawaii Revised Statutes 480E-2
  • Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
  • Provider: means any person or public or private institution, agency or business concern authorized by the department to provide health care, service or supplies to beneficiaries of medical assistance. See Hawaii Revised Statutes 346-1
  • Public assistance: means financial assistance to or for the benefit of persons whom the department has determined to be without sufficient means of support to maintain a standard consistent with this chapter, payments to or on behalf of such persons for medical care, and social service payments as described under the Social Security Act. See Hawaii Revised Statutes 346-1
  • Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Recipient: means the person for whose use and benefit services are rendered or a grant of public assistance is made. See Hawaii Revised Statutes 346-1
  • Residential loan: means any loan that is secured by a mortgage against residential real property, regardless of whether the property owner lacks sufficient equity in the property so as to render the loan partially or entirely unsecured. See Hawaii Revised Statutes 480E-2
  • Residential loan holder: means any person who holds the residential loan that is the subject of the offer to provide mortgage assistance relief services. See Hawaii Revised Statutes 480E-2
  • Residential real property: means any fee simple or leasehold real property wherever located, the primary use of which is occupancy as a residence by any natural person or persons, regardless of whether the property owner resides on the property. See Hawaii Revised Statutes 480E-2
  • Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
  • Servicer: means the person responsible for:

         (1)  Receiving any scheduled periodic payments pursuant to the terms of the residential loan that is the subject of the offer to provide mortgage assistance relief services; and

         (2)  Making the payments of principal and interest and such other payments with respect to the amounts received from the consumer as may be required pursuant to the terms of the mortgage servicing loan documents or servicing contract. See Hawaii Revised Statutes 480E-2

  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Social services: means crisis intervention, counseling, case management, and support activities such as day care and chore services provided by the department staff, by purchase of service, or by cooperative agreement with other agencies to persons meeting specified eligibility requirements. See Hawaii Revised Statutes 346-1
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
  • Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
  • Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC