HI SR94

Requests the Mortgage Foreclosure Task Force to study the RADHA (Real Estate Association for Depreciating Housing Assets) loan system as a new mortgage product to prevent foreclosures.

RADHA loan reverses the traditional 80/20 mortgage structure, potentially reducing monthly payments by 25-50 percent through a two-trust system.

First trust consists of 5-20 percent of the total mortgage repaid in the first 3-5 years, while the remaining 80 percent is held by the lender at 1-3 percent interest during this period.

Task Force must include findings, recommendations, and any proposed legislation regarding the RADHA loan system in its final report to the Legislature prior to the 2012 Regular Session pursuant to Act 162, Session Laws of Hawaii 2010.

Directs transmission of certified resolution copies to the Chairperson of the Mortgage Foreclosure Task Force and the Director of Commerce and Consumer Affairs.