HB 2687 Summary

• Establishes a downpayment loan loss reserve program administered by the Hawaii Housing Finance and Development Corporation to cover defaults on downpayment loans made to eligible first-time homebuyers.

• Allows the corporation to set aside funds as a loan loss reserve that covers a percentage of defaulted second mortgage loans, either by loan pool or individual loan basis.

• Permits the corporation to engage nonprofit organizations to operate the downpayment loan loss reserve program.

• Creates one full-time downpayment loan loss reserve administrator position within the corporation, appointed by the executive director.

• Appropriates unspecified funds from general revenues and the housing finance revolving fund for fiscal year 2020-2021 to establish the program and fund the administrator position; effective July 1, 2050.