HB 2114 Summary

• Amends the definition of "distressed property consultant" under Hawaii's mortgage rescue fraud prevention act to narrow exemptions and focus protections on attorneys, residential loan holders, and loan servicers.

• Removes broad exemptions previously granted to HUD-approved mortgagees, certified public accountants, nonprofit organizations, and real estate brokers from the definition of distressed property consultant.

• Expands the definition of "mortgage assistance relief service" to include additional predatory practices such as forensic loan audits, securitization audits, and documentation used to advance foreclosure defenses.

• Changes "deed or trust" language to "deed of trust" and adds specific prohibitions against services that dispute loan holder authority or compliance with mortgage lending laws.

• Effective date set for January 1, 2050.