S.B. 2855 Summary

• Adds three new sections to Chapter 480E requiring distressed property consultants to maintain records for 24 months, monitor employee/contractor compliance, and establish complaint procedures with corrective action protocols.

• Authorizes the attorney general and executive director of the office of consumer protection to investigate and enforce violations of the federal Mortgage Assistance Relief Services Rule (12 CFR Part 1015).

• Establishes requirements for Hawaii-licensed attorneys providing mortgage assistance relief services, including written contracts, client trust accounts, and retention of funds until services are fully performed.

• Expands the definition of "mortgage assistance relief service" to include 18 specific categories of services and adds new prohibitions on misrepresentations, including false claims about government affiliation, likelihood of obtaining relief, and requirements to stop mortgage payments.

• Requires distressed property consultants to provide consumers with clear written disclosures about offer acceptance/rejection, payment obligations, and material differences between current and modified loan terms before accepting compensation.