Hawaii State Legislature 2011 Regular Session RELATING to MORTGAGE Foreclosures Moratorium HB894 HD1

8/7/2019 Hawaii State Legislature 2011 Regular Session RELATING to MORTGAGE Foreclosures Moratorium HB894 HD1

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HOME COMMUNITY VOLCANO CURRENTLY READING:

Haw ai i house advances Mortgage Forec losureMora to r ium b i l l

February 2, 2011 Community, Volcano 1 Comment

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Media release | Rep. Robert Herkes, Hawaii House of Representatives

Honolulu, Hawaii The House Joint Committees on Consumer Protection & Commerce

and Judiciary advanced a bill this afternoon which places a moratorium on all non-judicial

foreclosures in Hawaii. The moratorium would last 5 months from the effective date of thebills enactment.

HB894 was passed with amendments and will go straight to the House floor for voting.

This bill is needed to stop mortgagees who want to rush into foreclosing on homes in

Hawaii before appropriate legislation is enacted to deal with the mortgage foreclosure

problem, said Rep. Bob Herkes, chairman of the Committee on Consumer Protection &

Commerce. We dont want to shut down the mortgage market, but I think we need a

timeout.

Hawaii has one of the worst foreclosure rates in the country. In January, mortgage fraud

was cited as the reason why the states foreclosure rate is the 11th highest in the nation.

Rep. Herkes emphasized that the legislature will be working on a reasonable solution for

the mortgage foreclosure problems in the state during the moratorium period.

HB894 was introduced by Representative Mele Carroll. If passed by the full House, it will

cross over to the Senate for consideration.

Follow this bill at http://capitol .hawai i .gov

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CURRENTLY THERE IS "1 COMMENT" ON THIS ARTICLE:

Michael Rivero says:February 10 , 2011 a t 6 :30 am

This is at best a stalling measure which does not solve the real problem.

All this economic misery we are suffering (and which according to the FCIC report released a week ago, could have

been avoided) goes right back to the fraudulent mortgage-backed securities Wall Street was selling to investment

houses, pension funds, and banks around the world. History will show this as the biggest financial fraud since the

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Great South Seas Company fraud that collapsed in 1721. Even Allan Greenspan admitted on video during the

recent centennial commemoration of the creation of the Federal Reserve that fraud and criminality pervade the

American financial system.

But the scammers got caught. Mortgage-backed securities were loaded with non-performing mortgages. In some

cases, mortgages already in default were in the bundles. Mortgages were pledged to more than one bundle, which is

fraud. As foreign banks that had purchased the fraudulent packages stared to go broke, dragging their national

economies down with them, demands were made of the Wall Street scammers to repurchase the fraudulent

mortgage-backed securities. But the profits from the sales were already gone, vanished into record salaries and

bonuses for Wall Street CEOs, so Wall Street turned to the US Government to bail them out. The US Congress,

themselves invested in the very financial institutions at the heart of the scandal, started passing TARP and a host of

other programs to buy up the fraudulent mortgage-backed securities, now code-named toxic assets to conceal

what had been going on from the American people.

In all, some twelve trillion dollars were created out of thin air by the Federal Reserve and poured all over Wall Streetto fund the buy-back of the bad paper and settle the credit default swaps, a form of hedge-fund gambling that turned

billions into trillions of losses virtually overnight. But even that was not enough and banks struggling to stay solvent

needed a new source of wealth to add to their balance sheets; your homes.

Starting in the Bush administration and accelerating under Obama, tax credits were given to corporations that

encouraged the transfer of high paying jobs to other countries. Here in Hawaii the abuses of the TSA have wrecked

our tourism. In short, the US Government took our jobs to make it easier for the banks to take our homes. This is

wealth confiscation to save the banks, similar to Roosevelts gold-grab in 1933, only done in a way to trick

Americans into thinking it is their own fault they lost their homes.

Until the people stand up and refuse to pay for the bankers crimes, and demand the return if high paying jobs and

the end of TSA crotch-groping, a five-month delay in foreclosures is not a solution, it is a band-aid on an amputated

limb.

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Monday, February 7, 2011

Posted by Georgette at 6:47 PM

topics: Rep. Robert Herkes

Rep Herkes proposes moratorium on mortgage foreclosures

Rep. Robert Herkes

The House Joint Committees on Consumer Protection & Commerce and Judiciaryadvanced a bill last week which places a moratorium on all non-judicial foreclosures in

Hawaii. The moratorium would last 5 months from the effective date of the bills

enactment.

HB894 was passed with amendments and will go straight to the House floor for voting.

This bill is needed to stop mortgagees who want to rush into foreclosing on homes in Hawaii before appropriate

legislation is enacted to deal with the mortgage foreclosure problem, said Rep. Bob Herkes, chairman of the

Committee on Consumer Protection & Commerce. We dont want to shut down the mortgage market, but I think

we need a timeout.

Hawaii has one of the worst foreclosure rates in the country. In January, mortgage fraud was cited as the reason

why the states foreclosure rate is the 11th highest in the nation.

Rep. Herkes emphasized that the legislature will be working on a reasonable solution for the mortgage foreclosure

problems in the state during the moratorium period.

HB894 was introduced by Representative Mele Carroll. If passed by the full House, it will cross over to the Senate

for consideration.

Story in West Hawaii Today here.

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Back to Hawaii News in

Posted: Monday, February 7th, 2011 6:00 AM HST

Hawaii lawmakers want foreclosure moratorium

By Associated Press

HONOLULU (AP) The five-month moratorium on non-judicial home foreclosures is pendinbefore the full Hawaii House of Representatives.

House committees passed the foreclosure moratorium last week.

Supporters of the bill cite the state's high foreclosure rate, the 11th highest in the nation.

Bill introducer Rep. Mele Carroll says the measure would give homeowners breathing roomtay in their homes and work out a solution with their mortgage company through mediatioan modifications, negotiations or a forgiveness process.

She says the mortgage lending industry has undertaken too many questionable or predatooreclosures.

Consumer Protection and Commerce Committee Chairman Bob Herkes said he doesn't wano shut down the mortgage market, but it needs a time-out.

f passed, the bill would advance to the state Senate.
http://www.kpua.net/news.phphttp://www.kpua.net/news.php


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"From a policy perspective, I'm not sure if that's the right message to be sending to banks or mortgage lenders

that the state of Hawaii will place a moratorium any time they feel, for whatever reason, it's appropriate to do

so," Fujitani said.

"Maybe the cooling off period should be, once you file a foreclosure, there is a period of time before you initiate

the foreclosure. That's to me, much more preferable than an outright ban that you cannot file a foreclosure."

Fujitani said the problem isn't so much the mortgage foreclosure process, it's that there is bad communication

between some lenders and borrowers. He doesn't believe mediation is the answer either.

"If you can't pay, you can't pay," Fujitani said. "I feel for them. But the reality is that as a bank, we have an

obligation to make sure we collect loans. And before we do that, we're going to work our darndest to make sure

we can keep people in their homes. I mean that's the right thing to do."

Brown told Civil Beat she and her husband bought their home in Kula in 2003. In 2008, her income started to

slip. So did that of her husband, a piano teacher.

"We had never, ever been late on a payment before. We struggled but we were going to keep our house. We

love our home."

She says when she heard of President Obama's Making Home Affordable program, she was "shocked that therewas help." The plan is intended to help those qualified to modify their mortgages to make them more affordable.

Brown says she called her loan servicer and said she wanted to apply for the modification. The servicer told

Brown she needed to be late on a mortgage payment to qualify.

"We had never been late before on our payment, but we trusted them because it's a government program,"

Brown said. "(Our lender) told us we needed to be delinquent on our loan in order to get this modification. So we

did it. And it was scary to do because we had a flawless record. We worked hard, this was so important to us.

Our home is everything."

Brown says a few months passed and she and her husband were put on a modified payment plan. A $2,400

mortgage was reduced to $1,500 monthly. The plan was supposed to last for three months but it dragged on for

a year, the servicer claiming it needed updated paperwork or more time, Brown said.

Then, unexpectedly, Brown's servicer said she no longer qualified to keep her mortgage.

"We're sitting ducks," Brown said. "We're not currently in foreclosure but we have no modified payment. We

have no agreement. They will not take a payment unless we cure the loan now, which is all those back

payments for when we were in the modified (period)."

Brown says she and her husband have hired an attorney. But, in the meantime, she is fighting to enact

legislation that may help those struggling with foreclosure.

Vance's situation is similar to Brown's. She saw her income drop at the beginning of the recession and is in

limbo, waiting to see if she can find a way to keep her house, which she says she could have sold a couple of

years ago for $850,000 and is now worth $400,000.

"I bought my home eight years ago after living in it for about two years," Vance said. "I purchased the home. I

had every reason to believe I'd be able to live up to my obligation. I had excellent credit. I was qualified

financially with my income and so on and when the market started to go down, we got hit really hard just like

the rest of the country.

"I'm probably making a fifth of what I was making. So I was no longer able to keep up. I got a couple months
http://www.makinghomeaffordable.gov/http://www.makinghomeaffordable.gov/


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behind and then they stopped accepting any payments. Then it regressed because I couldn't do the makeup into

actual foreclosure. And I have been in foreclosure for over two and a half years."

The moratorium on foreclosures was amended to limit it to five months and approved by the committee. A

decision on mandatory mediations was deferred until Friday. It will be heard in conference room 229 at 10 a.m.


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CLASS ACTIONSDEPOSITIONSEducation Foreclosure Laws by State LPS 101MERS 101Securitization 101

Categorized |STOP FORECLOSURE FRAUD

Hawaiian Legislature Seek Time-Out 5 Month Moratorium OForeclosures

osted on10 February 2011. Tags: foreclosure fraud, Hawaii, hb894hd1, house of representatives,egislature, Mele Carroll, rep. Bob Herkes

bill (HB894 HD1) introduced by Representative Mele Carroll was sent to the House of Reps seeking tompose a five month moratorium on non-judicial foreclosure.

According to Big Island Video News:

This bill is needed to stop mortgagees who want to rush into foreclosing on homes in Hawaiibefore appropriate legislation is enacted to deal with the mortgage foreclosure problem, saidRep. Bob Herkes, chairman of the Committee on Consumer Protection & Commerce. We dontwant to shut down the mortgage market, but I think we need a timeout.

awaii has one of the worst foreclosure rates in the country. In January, mortgage fraud was cited as theason why the states foreclosure rate is the 11th highest in the nation.

ollow this bill at http://capitol.hawaii.gov
http://stopforeclosurefraud.com/class-actions/http://stopforeclosurefraud.com/depositions/http://stopforeclosurefraud.com/education/http://stopforeclosurefraud.com/foreclosure-laws-by-state/http://stopforeclosurefraud.com/lps-101/http://stopforeclosurefraud.com/mers-101/http://stopforeclosurefraud.com/securitization-101/http://stopforeclosurefraud.com/category/stop-foreclosure-fraud-2/http://stopforeclosurefraud.com/2011/02/10/hawaiian-legislature-seek-time-out-5-month-moratorium-on-foreclosures/http://stopforeclosurefraud.com/2011/02/10/hawaiian-legislature-seek-time-out-5-month-moratorium-on-foreclosures/http://stopforeclosurefraud.com/tag/foreclosure-fraud/http://stopforeclosurefraud.com/tag/hawaii/http://stopforeclosurefraud.com/tag/hb894hd1/http://stopforeclosurefraud.com/tag/house-of-representatives/http://stopforeclosurefraud.com/tag/legislature/http://stopforeclosurefraud.com/tag/mele-carroll/http://stopforeclosurefraud.com/tag/rep-bob-herkes/http://stopforeclosurefraud.com/wp-content/uploads/2011/02/time-out1.jpghttp://stopforeclosurefraud.com/tag/rep-bob-herkes/http://stopforeclosurefraud.com/tag/mele-carroll/http://stopforeclosurefraud.com/tag/legislature/http://stopforeclosurefraud.com/tag/house-of-representatives/http://stopforeclosurefraud.com/tag/hb894hd1/http://stopforeclosurefraud.com/tag/hawaii/http://stopforeclosurefraud.com/tag/foreclosure-fraud/http://stopforeclosurefraud.com/2011/02/10/hawaiian-legislature-seek-time-out-5-month-moratorium-on-foreclosures/http://stopforeclosurefraud.com/2011/02/10/hawaiian-legislature-seek-time-out-5-month-moratorium-on-foreclosures/http://stopforeclosurefraud.com/category/stop-foreclosure-fraud-2/http://stopforeclosurefraud.com/securitization-101/http://stopforeclosurefraud.com/mers-101/http://stopforeclosurefraud.com/lps-101/http://stopforeclosurefraud.com/foreclosure-laws-by-state/http://stopforeclosurefraud.com/foreclosure-laws-by-state/http://stopforeclosurefraud.com/education/http://stopforeclosurefraud.com/education/http://stopforeclosurefraud.com/depositions/http://stopforeclosurefraud.com/class-actions/http://tinyurl.com/4st5xeohttp://stopforeclosurefraud.com/


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F I L E A R C H I V E

Haw ai i St a t e Leg is la t u re

2011 Regular Sess ionRELAT IN G TO MORTGAGE FORECLOSURES

HB894 HD1


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Hawaii State Legislature2011 Regular Session

HB894 HD1

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Measure Title: RELATING TO MORTGAGE FORECLOSURES.

Report Title: Nonjudicial; Mortgage Foreclosures; Five-month moratorium

Description: Places a five month moratorium on nonjudicial foreclosures. (HB894 HD1)

Companion:

Package: None

Current Referral: CPC/JUD

Introducer(s): CARROLL, HANOHANO, Evans, Morikawa, Wooley

Date Status Text

1/24/2011 H Pending introduction.

1/26/2011 H Introduced and Pass First Reading.

1/26/2011 H Referred to CPC, JUD, referral sheet 2

1/28/2011 H Re-referred to CPC/JUD, referral sheet 3

1/28/2011 H Bill scheduled to be heard by CPC/JUD on Wednesday, 02-02-11 2:00PM in House conference room 325

2/2/2011 H

The committees on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes wereas follows: 11 Ayes: Representative(s) Herkes, Yamane, Brower, Carroll, Keith-Agaran, McKelvey, B.

Oshiro, Tsuji, Marumoto, Thielen; Ayes with reservations: Representative(s) Ching; Noes: none; and 5

Excused: Representative(s) Cabanilla, Ito, Luke, Morita, Souki.

2/2/2011 H

The committees on JUD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were

as follows: 11 Ayes: Representative(s) Keith-Agaran, Rhoads, Brower, Carroll, Herkes, McKelvey, B.

Oshiro, Tsuji, Marumoto, Thielen; Ayes with reservations: Representative(s) Fontaine; Noes: none; and

Excused: Representative(s) Cabanilla, Ito, Luke, Morita, Souki.

2/8/2011 HReported from CPC/JUD (Stand. Com. Rep. No. 127) as amended in HD 1, recommending passage on

Second Reading and placement on the calendar for Third Reading.
http://__dopostback%28%27linkbuttonmeasure%27%2C%27%27%29/http://__dopostback%28%27linkbuttonmeasureprev%27%2C%27%27%29/http://__dopostback%28%27linkbuttonmeasureprev%27%2C%27%27%29/http://__dopostback%28%27linkbuttontestimony%27%2C%27%27%29/http://__dopostback%28%27linkbuttontestimony%27%2C%27%27%29/http://olelo.granicus.com/ViewSearchResults.php?keywords=HB894&view_id=13http://olelo.granicus.com/ViewSearchResults.php?keywords=HB894&view_id=13http://__dopostback%28%27linkbuttonsubmittestimony%27%2C%27%27%29/http://__dopostback%28%27linkbuttonsubmittestimony%27%2C%27%27%29/http://__dopostback%28%27gridview1%27%2C%27sort%24status_date%27%29/http://__dopostback%28%27gridview1%27%2C%27sort%24status_date%27%29/http://__dopostback%28%27linkbuttonsubmittestimony%27%2C%27%27%29/http://__dopostback%28%27linkbuttonsubmittestimony%27%2C%27%27%29/http://olelo.granicus.com/ViewSearchResults.php?keywords=HB894&view_id=13http://olelo.granicus.com/ViewSearchResults.php?keywords=HB894&view_id=13http://__dopostback%28%27linkbuttontestimony%27%2C%27%27%29/http://__dopostback%28%27linkbuttontestimony%27%2C%27%27%29/http://__dopostback%28%27linkbuttonmeasureprev%27%2C%27%27%29/http://__dopostback%28%27linkbuttonmeasureprev%27%2C%27%27%29/http://__dopostback%28%27linkbuttonmeasure%27%2C%27%27%29/


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2/8/2011 HPassed Second Reading as amended in HD 1; placed on the calendar for Third Reading with none voting

(0) and none excused (0).

S = Senate

H = House

D = Data Systems

= Appropriation measure

ConAm = Constitutional Amendment

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This report was generated on Feb 10, 2011 at 4:40:13 AM

HB894 HD1
http://www.capitol.hawaii.gov/site1/docs/disclaimer.asphttp://www.capitol.hawaii.gov/site1/docs/disclaimer.asphttp://www.capitol.hawaii.gov/site1/links/linkto.asp?URL=http%3a%2f%2fwww.adobe.com%2fproducts%2facrobat%2freadstep2.html&Text=Adobe%27s+Download+Pagehttp://www.capitol.hawaii.gov/site1/links/linkto.asp?URL=http%3a%2f%2fwww.adobe.com%2fproducts%2facrobat%2freadstep2.html&Text=Adobe%27s+Download+Pagehttp://www.capitol.hawaii.gov/site1/docs/disclaimer.asp


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RSS - HB894 St at us Feed

2/8/11 HB894: Passed Sec ond Reading as amended in HD 1; p laced

he c a lendar fo r Th i rd Read ing w i th none vo t ing no (0 ) and noneexc used (0 ).

om HB894 Status Feed

/8/11 HB894: House Status Update

eb 8, 2011 (2 days ago)

2/8/11 H B89 4: Repor t ed from CPC/J UD (Sta nd. Com. Rep. No. 127) a

am ended in HD 1, rec om mending pass age on Sec ond Reading and

p lacem ent on t he c a lendar fo r Th i rd Read ing .



eb 3, 2011 3:41 PM

2/2 /11 HB894: The c omm i t t ees on JUD rec omm end tha t the m easur

be PASSED, WITH AMENDMENTS. The vot es w ere as fo l low s: 11

Ayes: Representat ive(s) K ei t h-Agaran, Rhoads, Brow er , Carro l l ,

Herk es, McK elvey, B. Oshi ro, Tsu j i , Marumot o, Th ie len; Ayes w i t h

eservat ions: Representat ive(s) Font a ine; Noes: none; and 5 Ex c use

Represent at ive(s) Cabani l la , I t o , Luke, Mor i t a , Souk i .om HB894 Status Feed


eb 3, 2011 3:41 PM

2/2 /11 HB894: The c omm i t t ees on CPC recomm end tha t the measur

be PASSED, WITH AMENDMENTS. The vot es w ere as fo l low s: 11

Ayes: Representat ive(s) Herkes, Yam ane, Brow er , Carro l l , K e i th -

Agaran, McK elvey, B. Oshi ro, Tsu j i , Marumot o, Th ie len; Ayes w i t h

eservat ions: Representat ive(s) Ching; Noes: none; and 5 Ex c used:Represent at ive(s) Cabani l la , I t o , Luke, Mor i t a , Souk i .



an 31, 2011 11:27 AM

/28/11 HB894: Bi l l s c heduled t o be heard by CPC/J UD on Wednesda

02-02-11 2:00PM in House c onference room 325.

http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894


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an 28, 2011 3:34 PM

/28/11 HB 894: Re-referr ed t o CPC/J UD, referra l sheet 3



an 26, 2011 3:41 PM

/26/11 HB894: Referred t o CPC, J UD, referr a l s heet 2om HB894 Status Feed


an 26, 2011 3:41 PM

/26/11 HB894: Int roduc ed and Pass First Reading.



an 24, 2011 8:04 PM

/24/11 HB894: Pending int roduc t ion.


http://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894http://www.google.com/reader/view/feed/http%3A%2F%2Fwww.capitol.hawaii.gov%2Fsession2011%2Frss%2FHB894.xml?hl=enhttp://www.capitol.hawaii.gov/session2011/lists/measure_indiv.aspx?billtype=HB&billnumber=894


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2011 Regular Sess ionHOUSE OF REPRESENTAT IV ES

A BILL FOR AN ACT

HB894 HD1


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HOUSE OF REPRESENTATIVES ~ 894TWENTY-SIXTH LEGISLATURE, 2011 IN H.D. 1STATE OF HAWAIIA BILL FOR AN ACT

RELATING TO MORTGAGE FORECLOSURES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:1 SECTION 1. No mortgagee shall initiate or continue with a2 foreclosure under power of sale under section 667-5, Hawaii3 Revised Statutes, or the alternative power of sale foreclosure4 process under part II of chapter 667, Hawaii Revised Statutes,5 beginning on the effective date of this Act and ending five6 months subsequent to the effective date of this Act.7 This Act shall not prohibit a mortgage foreclosure by8 action in the circuit court under section 667-1, Hawaii Rev ised9 Statutes.10 SECTION 2. This Act shall take effect upon its approval.

HB894 HD1 ENS 20111915


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H.B. NED. ~Report Title:Nonjudicial; Mortgage Foreclosures; Five-month moratoriumDescript ion:Places a five month moratorium on nonjudicial foreclosures.(143894 HDl)

The summary description of legislation appearing on this page is for informational purposes only and isnot legislation or evidence of legislative intent.

HB894 HD1 FINS 20111915~


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Hear ing Not ic e

Click on the Hearing Date to view the Hearing Notice.

Hearings notices for HB894

HearingDate

and Room

Bill

NumberMeasure Title Committee

2/2/2011 2:00

PMRoom: 325

HB894RELATING TO MORTGAGEFORECLOSURES.

CPC/JUD

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ing CPC-JUD 02-02-11

//www.capitol.hawaii.gov/session2011/hearingnotices/HEARING_CPC-JUD_02-02-11_.HTM[2/10/2011 7:10:11 AM]

HOUSE OF REPRESENTATIVES

THE TWENTY-SIXTH LEGISLATURE

REGULAR SESSION OF 2011

COMMITTEE ON CONSUMER PROTECTION & COMMERCE

Rep. Robert N. Herkes, Chair

Rep. Ryan I. Yamane, Vice Chair

Rep. Tom Brower Rep. Hermina M. Morita

Rep. Rida T.R. Cabanilla Rep. Blake K. Oshiro

Rep. Mele Carroll Rep. Joseph M. Souki

Rep. Ken Ito Rep. Clift Tsuji

Rep. Gilbert S.C. Keith-Agaran Rep. Corinne W.L. Ching

Rep. Sylvia Luke Rep. Barbara C. Marumoto

Rep. Angus L.K. McKelvey Rep. Cynthia Thielen

COMMITTEE ON JUDICIARY

Rep. Gilbert S.C. Keith-Agaran, Chair

Rep. Karl Rhoads, Vice Chair

Rep. Tom Brower Rep. Hermina M. Morita

Rep. Rida T.R. Cabanilla Rep. Blake K. Oshiro

Rep. Mele Carroll Rep. Joseph M. SoukiRep. Robert N. Herkes Rep. Clift Tsuji

Rep. Ken Ito Rep. George R. Fontaine

Rep. Sylvia Luke Rep. Barbara C. Marumoto

Rep. Angus L.K. McKelvey Rep. Cynthia Thielen

NOTICE OF HEARING

DATE: Wednesday, February 2, 2011

TIME: 2:00 pm

PLACE: Conference Room 325

State Capitol

415 South Beretania Street

A G E N D A

HB 894

Status

RELATING TO MORTGAGE FORECLOSURES.

Places a moratorium on foreclosures pending a national investigation on

securitization.

CPC/JUD

DECISION MAKING TO FOLLOW

ersons wishing to offer comments should submit testimony at least 24 hours prior to the hearing with a transmittal cover indicating:

Testifier's name with position/title and organization;

The Committee the comments are directed to;

The date and time of the hearing;

Measure number; and

The number of copies the Committee is requesting.

While every effort will be made to copy, organize, and collate all testimony received, materials received on the day of the hearing or improper

dentified or directed to the incorrect office, may be distributed to the Committee after the hearing.

ubmit testimony in ONE of the following ways:

APER: 1 (one) copy (including an original) to Room 320 in the State Capitol;

AX: For comments less than 5 pages in length, transmit to 586-8404 (for Oahu) or 1-800-535-3859 (for Neighbor Islanders without a


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ing CPC-JUD 02-02-11

//www.capitol.hawaii.gov/session2011/hearingnotices/HEARING_CPC-JUD_02-02-11_.HTM[2/10/2011 7:10:11 AM]

computer to submit testimony through e-mail or the Web);

MAIL: For comments less than 5 pages in length, transmit to [email protected] ; or

WEB: For comments less than 4MB in size, transmit from the Web page at http://www.capitol.hawaii.gov/emailtestimony.

estimony submitted will be placed on the Legislative Web site after the hearing adjourns. This public posting of testimony on the Web site

hould be considered when including personal information in your testimony.

you require special assistance or auxiliary aids and/or services to participate in the House public hearing process (i.e., sign or foreign langua

nterpreter or wheelchair accessibility), please contact the Committee Clerk at 586-6172 or email your request for an interpreter to

[email protected] atleast 24 hours prior to the hearing for arrangements. Prompt requests submitted help to ensure thevailability of qualified individuals and appropriate accommodations.

elected meetings are broadcast live. Check the current legislative broadcast schedule on the "Capitol TV" Web site at www.capitoltv.orgOR

36-2100.

________________________________________

Rep. Gilbert Keith-Agaran

Chair

________________________________________

Rep. Robert N. Herkes

Chair
mailto:[email protected]?subject=testinghttp://www.capitol.hawaii.gov/emailtestimonymailto:[email protected]://www.capitoltv.org/http://www.capitoltv.org/http://www.capitoltv.org/mailto:[email protected]://www.capitol.hawaii.gov/emailtestimonymailto:[email protected]?subject=testing


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2011 Sess ion B i l l S ta tus , Tex t , Comm i t t ee Repor ts , and Tes t imony

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1. HB894_HD1_HSCR127_.HTM HB894 StatusContext:Filesize: 7520

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R127

//www.capitol.hawaii.gov/session2011/CommReports/HB894_HD1_HSCR127_.HTM[2/10/2011 7:06:36 AM]

STAND. COM. REP. NO. 127Honolulu, Hawaii

, 2011RE: H.B. No. 894

H.D. 1

onorable Calvin K.Y. Saypeaker, House of Representativeswenty-Sixth State Legislatureegular Session of 2011tate of Hawaii

ir:

Your Committees on Consumer Protection & Commerce and Judiciary, to whias referred H.B. No. 894 entitled:

"A BILL FOR AN ACT RELATING TO MORTGAGE FORECLOSURES,"

eg leave to report as follows:

The purpose of this bill is to place a moratorium on foreclosures pendihe release of a final report on any federal investigation on theecuritization of mortgages.

The ILWU Local 142 and many concerned individuals testified in support his bill. An individual supported this measure with amendments. The Officf Consumer Protection, Hawaii Bankers Association, Mortgage Bankersssociation of Hawaii, Hawaii Credit Union League, Hawaii Financial Servicesssociation, Hawaii Association of REALTORS, and a concerned individual oppos

his bill.

Your Committees have amended this bill by:

(1) Restricting the moratorium's application to non-judicial foreclosures; and

(2) Changing the end of the moratorium to five months subsequent to the effective date of this Act.

As affirmed by the records of votes of the members of your Committees oonsumer Protection & Commerce and Judiciary that are attached to this reportour Committees are in accord with the intent and purpose of H.B. No. 894, amended herein, and recommend that it pass Second Reading in the form attachereto as H.B. No. 894, H.D. 1, and be placed on the calendar for Thirdeading.

Respectfully submitted on behalf of themembers of the Committees on ConsumerProtection & Commerce and Judiciary,


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R127

//www.capitol.hawaii.gov/session2011/CommReports/HB894_HD1_HSCR127_.HTM[2/10/2011 7:06:36 AM]

____________________________GILBERT KEITH-AGARAN, Chair

____________________________ROBERT N. HERKES, Chair


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In Opposi t ionTo

HB894 HD1


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NEIL AMBERCROMBIEGOVERNORBRIAN SCHAIZLI. GOVERNOR

STATE OF HAWAIIOFFICE OF THE DIRECTORDEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS

335 MERCHANT STREET, ROOM 310P .O . Bo x 541HONOLULU, HAWAII 96809Phone Number: 586-2850Fax Number: 566-2656~wm.hawaii.gov!dcca

PRESENTATION OF THEOFFICE OF CONSUMER PROTECTIONTO THE HOUSE COMMITTEES ON CONSUMER PROTECTION & COMMERCEAND JUDICIARY

TWENTY-SIXTH LEGISLATURERegular Session of 2011Wednesday, February 2, 20112:00 P.m.

KEAUl S. LOPEZINTERIM OIRECTOREVERETT KANESHIGEOEPIJTI DIRECTOR

TESTIMONY ON HOUSE BILL NO. 894, RELATING TO MORTGAGE op~FORECLOSURES.TO THE HONORABLE ROBERT N. HERKES AND GILBERT S.C. KEITH-AGARAN,CHAIRS, AND MEMBERS OF THE COMMITTEES:

The Department of Commerce and Consumer Affairs (Department) appreciatesthe opportunity to testify regarding House Bill No. 894, Relating to MortgageForeclosures. My name is Stephen Levins, and I am the Executive Director of theOffice of Consumer Protection (OCP), representing the Department.

House Bill No. 894 seeks to place a moratorium on foreclosures in the State ofHawaii pending a national investigation on securitization.

The Department does not believe that present circumstances warrant such a


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Testimony on House Bill 894Wednesday, February 2, 2011Page 2moratorium. While the Department is aware of law enforcement actions around thecountry directed at particular lenders who allegedly have violated consumer protectionstatutes and foreclosure laws, it is unaware of any which has resulted in a mandatedforeclosure moratorium. Neither is it aware of any federal or state sponsored legislationin this regard. In fact, the Obama Administration has repeatedly rejected calls for anationwide moratorium on housing foreclosures amid fears that such a move couldcripple an already slow recovery of the U.S. housing market.

In view of the foregoing, the Department is not able to support this measure atthis time.

Thank you for providing me with the opportunity to testify on House B ill No . 894.I will be happy to answer any questions that the committee members may have.


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Hawaii BankersA $ S 0 0 I a t I 0 fl Ao8-524-5I61808-521-4120ADDRESS:I0006iShGpSIreetSuite 3018llonoluIo 11190813-4203

Presentation of the Committee on Consumer Protection and CommerceWednesday, February 2, 2011 at 2:00 p.m.Testimony on HR 894 Relating to Mortgage ForeclosuresIn Opposition

TO: The Honorable Chair Robert N. HerkesThe Honorable Vice Chair Ryan I. YamaneMembers of the CommitteeI am Gary Fujitani, Executive Director of the Hawaii Bankers Association (HBA), testifying in2pps!~tion to HB 894. HBA is the trade organization that represents all FDIC insured depositoryinstitutions doing business in Hawaii.This bill would place a moratorium on foreclosures pending a national investigation on securitization.The proposed legislation would have a chilling effect on Hawaiis slowly recdvering real estate marketby sending a signal that lenders are not able to collect on delinquent loans. This in turn could dry upthe availability of mortgage loans and send the State into an economic meltdown by weakening analready fragile real estate market.Your Mortgage Loan Task Force submitted substantive recommendations for nonjudicial foreclosuresthat should be considered instead of such a drastic approach to a short term problem.We incorporate by reference the testimonies separately submitted by the Hawaii Financial ServicesAssociation and Hawaii Credit Union League. -Thank you for the opportunity to provide our testimony and we request this bill be held.

Gary Y. FujitaniExecutive Director


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II=t~etSSOtI~TION2004 *DJWtTOMGR4IZABON

January 31, 2011

Mortgage Bankers Association ofHawaiiP.O. Box 4129, Honolulu, Hawaii 96812

The Honorable Robert N. Herkes andMembers of the House Committee onConsumer Protection and CommerceState Capitol, Room 325Honolulu, Hawaii 96813

The Honorable Gilbert S.C. Keith-Agaran an dMembers of the House Committee on JudiciaryState Capitol, Room 325Honolulu, Hawaii 96813

Re : House Bill 894 Relating to Mortgage ForeclosuresChair Herkes, Chair Keith-Agaran, members of the House Committee on ConsumerProtection and Commerce, and members of the House Committee on Judiciary:

I am Rick Tsujimura representing the Mortgage Bankers Association of Hawaii(MBAH). The MBAH is a voluntary organization of real estate lenders in Hawaii. Ourmembership consists of employees of banks, savings institutions, mortgage bankers,mortgage brokers, and other financial institutions. The members of the MBAH originatethe vast majority of residential and commercial real estate mortgage loans in Hawaii.When, and if, the MBAH testifies on legislation, it is related only to mortgage lending.The MBAH~pppses House Bill 894 Relating to Mortgage Foreclosures. TheMortgage Bankers Association of Hawaii strongly feels that these bills relating to thematter of foreclosures should be vetted as part of the mortgage foreclosure task forcesince both consumer an d lender groups are represented a nd c an work on the details ofeach bill to come to a consensus. We feel that the bills, as presented, have merit butinclude processes which may potentially cause harm to consumers and lenders.Thank you for the opportunity to present this testimony.


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1654 South King StreetHonolulu, Hawaii 96826-2097Telephone: (808) 941.0556Fax: (808) 945.0019Web site: www.hcul.orgc~k~ Email: [email protected]

Testimony to the House Committee on HousingWednesday, February 2, 2011 at 8:30 am.Testimony in opposition to HB 894, Relating to Mortgage Foreclosures

To: The Honorable Rida Cabanilla, ChairThe Honorable Pono Chong, Vice-ChairMembers of the Committee on HousingWe are Stefanie Sakamoto and Frank Hogan, Esq., and we are testifying on behalf of theHawaii Credit Union League, the local trade association for 85 Hawaii credit unions,representing approximately 810,000 credit union members across the state.The Hawaii Credit Union League is in opposition to SB 894, Relating to Mortgage Foreclosures.This bill would place a moratorium on all foreclosures, pending a national investigation onsecuritization.This bill would essentially freeze the mortgage market in Hawaii altogether. Lenders would beunable to make ~y mortgages under these conditions, which would in turn further weaken analready struggling economy.In addition, we are unaware of any such investigation on securitization. Thus, the timeframe forthis proposed moratorium would be indefinite.Your Mortgage Foreclosure Task Force submitted substantive recommendations for non-judicialforeclosures that should be considered instead of such a drastic approach to a short termproblem. We are also in agreement with the testimony of the Hawaii Financial ServicesAssociation and the Hawaii Bankers Association.

Hawaii Credit Union LeagueYour Partner For Success

Thank you for the opportunity to testify.


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HAWAU FINANCIAL SERVICES ASSOCIATIONdo Marvin S.C. Dang, Attorney-at-LawP.O.Box 4109Honolulu, Hawaii 96812-4109Telephone No.: (808) 521-8521Fax No.: (808) 521-8522February 2,2011

Rep. Robert N. Herkes, Chairand members of the House Committee on Consumer Protection & CommerceRep. Gilbert S.C. Keith-Agaran, Chairand members of the House Committee on JudiciaryHawaii State CapitolHonolulu, Hawaii 96813Re: House Bill 894 (Mortgage Foreclosures)Hearing DatefLime: Wednesday. February 2,2011.2:00 P.M.lam the attorney for theHawaii Financial Services Association (IIFSA). The HFSA is thetradeassociation forHawail s financial services loan companies,which are regulated by the HawaiiCommissionerof Financial Institutions. Financial services loan companies make mortgage loans and other loans.The IWSA ~pp~ this Bill.The purpose of this Bill is to place a moratorium on foreclosures pending a national investigationon securitization.This testimony is based, in part, on my role as the Vice Chairperson of the Hawaii Mortgage

Foreclosure Task Force (Task Force). I served as a member of the Task Force as the designee of theHFSA. This testimony is also based on my experience as an attorneywho has actively done foreclosures fornearly 33 years since 1978.The Task Force, which was created by Ac t 162 ofthe 2010 Session Laws ofHawaii, issued its 2011Preliminary Report to the Legislature. The Task Forces recommendations are contained in other bills. Webelieve that the recommendations are substantive and provide meaningful improvements to the non-judicialforeclosure process. The recommendations are the result ofconsensus by the 17 Task Force members whorepresented diverse, and in some instances opposing, interests.The provisions in this Bill (House Bill 894) are not part of the Task Forces recommendations.The HFSA believes that only the recommendations of the Task Force should be adopted by theLegislature.Any other issues, such as the one raised by this Bill, can continue to be reviewed by the Task Forceover the remainder of this year as the Task Force considers other recommendations for the 2012 Legislature.We are unaware of a pending national investigation on securitization which would justi~ aforeclosure moratorium. We incorporate by reference the testimonies separately submitted by the HawaiiBankers Association and the Hawaii Credit Union League opposing this Bill.Accordingly, we ask that you hold this Bill and not pass it.Thank you for considering our testimony.

MARVIN S.C. DANGAttorney for Hawaii Financial Services Association(MSCD/hfsa)


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,~\ HawaPi The REALTOR Building Phone: (808) 733-7060Association of 1136 12m Avenue, Suite 220 Fax: (808) 737-4977~ REA LTO R S Honolulu, Hawaii 96816 Neighbor Islands. (888) 737-9070www.hawallrealtors.com Email: [email protected] 1,2011The Honorable Robert N. Herkes, ChairHouse Committee on Consumer Protection & CommerceThe Honorable Gilbert S.C. Keith-Agaran, ChairHouse Committee on JudiciaryState Capitol, Room 325Honolulu, Hawaii 96813RE: H.B. 894 Relating to Mortgage ForeclosuresHEARING: Wednesday, February 2,2011 at 2:00 p.m.

Aloha Chair Herkes, Chair Keith-Agaran and Members of the Joint Committees:I am Myoung Oh, Government Affairs Director of the Hawaii Association ofREALTORS (HAR), the voice of real estate in Hawaii, testif~ing on behalf of its8,500 members. HAR opposes H.B. 894 which places a moratorium on foreclosureproceedings pending a national investigation on securitization.HAR believes freezing foreclosures in Hawaii is not the prudent step to take in this fragilehousing market since a moratorium may motivate a borrower to stop making payments.Borrowers who stop making payments would face an increased financial risk of beingdeeper in debt, as more penalties and fees are incurred. The end result may be that thesehomeowners would be unable to recover from their situation.We believe if a moratorium is implemented, a ballooning foreclosure backlog couldprevent the market from clearing which could result in home prices decreasing andexacerbating the housing-market crisis by increasing uncertainty.HAR further believes that the cost will be borne directly by investors in mortgage-backedsecurities and mortgage servicing companies, and ultimately by American taxpayers, whonow stand behind 90% of new mortgages, due to guarantees by Fannie Mae, Freddie Macand the Federal Housing Administration.For the foregoing reasons, we respectfully recommend that this bill be held.Mahalo for the opportunity to testifS.

REALTOR isa registered collective membership mark which may be used only by real estate professionalswho are members of the NATIONAL ASSOCIATION OF REALTORS and subscribe to its strict Code of Ethics.1 OPPORTUNITY


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rom: mailinglistcapitol.hawa.goVTuesday, February 01, 2011 1:51 PMCPCtestimonyjdodsonebgca.netTestimony for I-!B894 on 2/212011 2:00:00 PM

fo r CPC/JUD 2/2/2011 2:00:00 PM H8894room: 325position: ~pposewill be present: Noby: Jim Dodson

Ewa by Gentry Community Association91-1795 Keaunui Drive Ewa Beach, HI 96706Phone: 808 685-0111E-mail: idodson~~ebgca.netubmitted on: 2/1/2011Comments:This bill totally adds to the national crisis and does nothing to mitigate the affect thatforeclosures have on the economy. Please write a law that allows us an interest deduction sowe can pay off our credit card debt and afford home ownership.

-J

1


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In Suppor tOf

HB894 HD1


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CPCtestimonyFrom: Joanne Kealoha [email protected]]Sent: Tuesday, February 01, 2011 8:19 PMTo: CPCtestimonySubject: TESTIMONY: H.B. 894Attachments: 201 1H6894.rtfAttached is testimony from the ILWU Local 142 on H.B. 894, which will be heard tomorrow at 2:00 p.m. in ajoint hearing of theHouse Committee on Consumer Protection and Commerce and the House Committee on Judiciary. Thank you for considering ourtestimony.

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The Twenty-Sixth LegislatureRegular Session of 2011HOUSE OF REPRESENTATIVESCommittee on Consumer Protection and CommerceRep. Robert N. Herkes, ChairRep. Ryan L. Yamane, Vice ChairCommittee on JudiciaryRep. Gilbert S.C. Keith-Agaran, ChairRep. Karl R1ioads, Vice ChairState Capitol, Conference Room 32 5Wednesday, February 2,2011; 2:00 p.m.

STATEMENT OF THE ILWU LOCAL 142 ON H.B. 894RELATING TO MORTGAGE FORECLOSURES

The ILWU Local 142 supportsH.B. 894, which places a moratorium on foreclosures pending anational investigation on securitization.Across the country, homeowners are facing foreclosure. Some ofit is due to the worst economicdownturn perhaps since the Great Depression. Some of it is due to the greed and unscrupulousbehavior of mortgage lenders who prey on individuals desire to achieve the American dream ofhomeownership. Most of these homeowners are hard-working individuals who trusted their lenderswhen they signed onto mortgage loans on which they eventually defaulted.The problem is that foreclosure creates more problems than it solves. While lenders may be gratefulto cut their losses, even they will have a difficult time disposing of foreclosed homes. The realproblem, however, lies with the homeowners and their families who, upon foreclosure, will findthemselves without a roof over their heads. Especially in Hawaii, affordable rental housing is adream in itself. People considered homeownership inthe first place because rents were so high.The federal government is looking at ways to ensure that foreclosures are done properly and fairly.Knowing that this is coming up, at least one lender is trying to rush through foreclosures before majorscrutiny occurs. H.B. 894 is intended to place a moratorium on foreclosures to stop these expeditedforeclosures.The ILWU urges passage of H.B. 894. Thank you for the opportunity to testify on this measure.


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Representative Robert Herkes, ChairRepresentative Ryan Yamane, Vice-ChairConsumer Protection and Commerce CommitteeRepresentative Gilbert Keith-Agaran, ChairRepresentative Karl Rhoads, Vice-ChairJudiciary Committee

House of Representatives of the State of HawaiiLance D. Collins, Ph.DLaw Office of Lance D Collins

Wednesday, February 2, 2011Support for HB No. 894, Relating to Mortgage ForeclosuresMy name is Lance D. Collins. I am an attorney in private practice on the island

of Maui and testify on my own behalf. I support this bill with amendments.Section 1 should be amended so that the ending date of the bill occurs the day

after the last day of the regular session of the legislature in which the final report ofthe federal government is released or if the legislature is not in regular session thenthe day after the last day of the next regular session.

The governor and/or leadership of the house should not be forced into aposition whereby a special session must be called to avoid a catastrophic flood offoreclosure actions being reactivated by the untimely release of any such report.

Thank you for this opportunity to provide testimony on this measure.Mahalo.


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January 30, 2011TESTIMONY FOR HB894RELATING TO MORTGAGE FORECLOSURES(Places a moratorium on foreclosures pending a national investigation on securitization)

DATE: Wednesday, February 2, 2011TIME: 2:00 pmPLACE: Conference Room 325State Capitol415 South Beretania StreetTO: COMMITTEE ON CONSUMER PROTECTION & COMMERCERep. Robert N. Herkes, ChairRep. Ryan I. Yamane, Vice ChairAnd Colleagues

COMM]TFEE ON JUDICIARYRep. Gilbert S.C. Keith-Agaran, ChairRep. Karl Rhoads, Vice ChairAnd ColleaguesFROM:

JADE L. BROWNRepresenting Homeowners of Hawaii239 Upper K imo Drive, Kula, I-fl 96790(808) 344-1740My name is Jade L. Brown. I am a responsible Maui homeowner at r isk of losing my home andI need this legislature to pass (SBS7G & SB651) so that my family will have the chance to saveour home. I am honored to be able to have my voice heard regarding foreclosures in the Stateof Hawai i. Thank you for the opportunity to represent homeowners across our state who arefacing and/or trying to prevent foreclosure.Shortly after moving to Maui in 2003, I purchased my home along with my husband Patrick, along-time Maui resident. Prior to moving in, I had a dream. The land came to me and saidthat I was the right one to live on and care for the Land. I had never had such a powerfuldream. I had much to learn at the time about the Ama and the special relationship betweenhumankind and the Land. I am still learning. I love my home, the grass, dirt, bugs, and animals.Patrick and I have worked hard every day to pay the mortgage, maintain our home, and begood stewards of the precious Land. I know that scores of others in our state are honored toparticipate with their home and Land in the same way.

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What I am trying to sa y is that home has a very special meaning to us here in Hawaii. This iswhy so many of us have become shocked and sickened to learn what our home ownership ha sbecome to the players of the banking industry and Wall Street. We have learned that thecontracts we entered into when purchasing our homes were not really mortgages, but securityinstruments involving parties unknown and undisclosed to us. Our mortgages have beenendorsed and assigned to parties unknown and undisclosed to us, often many times over. Suchendorsements and assignments were conducted without proper recordkeeping, possiblymaking identification of our true creditor impossible and therefore, valid l ien release uponpayoff, also impossible. The banking industry allegedly avoided proper recordkeepingintentionally to bypass having to pay local recording fees. This lost revenue, which could tallymillions of dollars, has robbed our local economy and contributed to the financial crisis that ourstate is in. Credit enhancements and insurance policies were attached to our mortgageswithout our knowledge, financially enriching parties unknown and undisclosed to us in themillions of dollars if we went into default. Often times, we were targeted for such default atloan origination. We have learned that because our titles are now clouded due tosecuritization, documents may have been falsified to fabricate a perfected chain of titleallowing parties with questionable standing to foreclosure on our homes. And finally, we havelearned that our creditor or creditors have likely been made whole already through variousinsurance policies, credit default swaps, and when all those funds were exhausted, bailoutmoney from our tax dol lars . Given the questionable nature of these practices, a nationalinvestigation appears in order.As the financial crisis hit my income was significantly reduced and we began to struggle makingour mortgage payment. President Obama appeared ready to help us with his Making HomesAffordable Program. We applied for a modification. We were told by our servicer that we hadto be delinquent in order to qualify. We had never been late on a payment before, but wetrusted the directions of our servicer because after all, this was a government program andsurely they were conducting themselves with integrity and in good faith. After over 167 phonecalls, 85 faxes because they kept losing our paperwork, a trial modification that was supposedto last 3 months but dragged on for almost a year,

Hawaii State Legislature 2011 Regular Session RELATING to MORTGAGE Foreclosures Moratorium HB894 HD1

Documents

Transcript of Hawaii State Legislature 2011 Regular Session RELATING to MORTGAGE Foreclosures Moratorium HB894 HD1