HI SB1093

Establishes mandatory loss mitigation requirements for mortgage servicers, including loan modifications and other alternatives to foreclosure when borrowers demonstrate financial hardship and net present value of modified loan exceeds foreclosure recovery.

Requires mortgage servicers to acknowledge loss mitigation requests within 10 business days, complete eligibility evaluations within 30 days, and provide written determinations with specific reasons if denied, including appeal procedures and contact information for state financial institutions division.

Mandates surety bonds of $100,000 for mortgage servicer licenses covering principal and branch offices, with provisions for bond cancellation procedures and automatic license suspension if bond is not maintained or replaced.

Expands prohibited activities to include failure to comply with loss mitigation requirements, Home Affordable Modification Program guidelines, federal mortgage servicing laws, credit reporting obligations, and proper handling of escrow accounts and insurance placement.

Updates payment crediting requirements, requiring principal and interest to be credited before taxes, insurance, or fees on loans originated after July 1, 2015, and establishes timelines for payment crediting, statement delivery, and payoff statement provision.