HB 2326 Summary

• Adds recordkeeping requirements for distressed property consultants to maintain contracts, communications, marketing materials, and consumer complaint information for 24 months, with monitoring and compliance procedures for employees and contractors.

• Authorizes the Attorney General and Office of Consumer Protection to investigate and enforce violations of federal mortgage assistance relief services rules (12 CFR Part 1015) through civil actions.

• Requires attorneys providing mortgage assistance relief services to execute written contracts, maintain client trust accounts, and deposit consumer funds into trust until services are fully performed.

• Expands prohibitions on distressed property consultants to include misrepresentations about service likelihood, timing, government affiliation, loan obligations, and requires specific written disclosures comparing current loan terms to modified loan terms.

• Establishes that violations of the federal mortgage assistance relief services rules constitute unfair or deceptive practices under Hawaii's consumer protection law.