HI SCR156

Requests the Mortgage Foreclosure Task Force to study the RADHA (Real Estate Association for Depreciating Housing Assets) loan system as a potential method to reduce mortgage foreclosures in Hawaii.

The RADHA loan reverses the traditional 80/20 mortgage structure by dividing the loan into two trusts, potentially reducing monthly payments by 25-50 percent.

Under the RADHA system, borrowers repay 5-20 percent of the loan in the first 3-5 years while the lender holds the remaining 80 percent at 1-3 percent interest, with equity building to 20 percent during this period.

Directs the Task Force to include findings, recommendations, and any proposed legislation regarding the RADHA loan system in its final report to the Legislature pursuant to Act 162, Session Laws of Hawaii 2010.

Requires certified copies be transmitted to the Chairperson of the Mortgage Foreclosure Task Force and the Director of Commerce and Consumer Affairs.