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HB 1047 Hawaii House · 2025 Regular Session

RELATING TO INTEREST ON INSURANCE PROCEEDS RELATED TO A MORTGAGE LOAN.

Summary
Requires Hawaii financial institutions, during a declared state of emergency, and mortgage servicers to determine whether insurance proceeds are to be applied to a mortgage or be placed into an interest-bearing escrow account. Prohibits charging a fee for the maintenance or disbursement of the interest earned from the interest-bearing escrow account. (HD1)
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
Governor
Introduced Jan 21, 2025 Last action Feb 14, 2025
Maddy AI version diff · 1 comparison

What changed between versions

HB1047 → HB1047_HD1 · 7 edits
MODERATE
This bill significantly expands and clarifies requirements for how Hawaii financial institutions and mortgage servicers must handle insurance proceeds from disaster damage. It adds protections during declared states of emergency, establishes interest-bearing escrow accounts for rebuild funds, and prohibits fees on interest earned from these accounts. The bill also strengthens existing mortgage servicer duties regarding payments, escrows, and consumer disclosures.
Scope change
The bill expands applicability to include specific protections during declared states of emergency and clarifies requirements for both Hawaii financial institutions and mortgage servicers handling insurance proceeds related to mortgage loans.
REQUIREMENT

Added requirement that financial institutions contact borrowers within 30 days to determine if insurance proceeds should pay off mortgages or be placed in escrow accounts for rebuilding

Mandated that interest earned on escrow accounts holding insurance proceeds must be credited to borrowers monthly without charging maintenance fees

Expanded mortgage servicer duties to include specific requirements for handling insurance proceeds during disaster recovery, including escrow account analysis for deficiencies

Added requirement that mortgage servicers must provide payoff statements within 5 business days of request without charging fees

Established new complaint resolution requirements for mortgage servicers, including providing contact information within 10 business days

Added requirement that mortgage servicers maintain adequate records for seven years at their licensed office location

TIMELINE

Set effective date of July 1, 2025 for all new requirements

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
9
Key actions
1
Committee
3
Feb 14, 2025
Committee
Reported from CPC (Stand. Com. Rep. No. 674) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
lower
Feb 11, 2025
Lower · Passed
The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 10 Ayes: Representative(s) Matayoshi, Chun, Ilagan, Ichiyama, Iwamoto, Kong, Lowen, Marten, Tam, Pierick; Ayes with reservations: none; Noes: none; and Excused: none.
lower
Jan 23, 2025
Committee
Referred to CPC, FIN, referral sheet 3
lower
Jan 23, 2025
Introduced
Introduced and Pass First Reading.
lower
Jan 21, 2025
Introduced
Pending introduction.
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Nadine Nakamura
Nadine Nakamura
DDemocratic
HI
15