Hawaii HB1047 regulates the handling and disbursement of insurance proceeds related to mortgage loans, including interest accrual and borrower.
Hawaii HB1047 amends state statutes to establish guidelines for handling insurance proceeds related to mortgage loans. Financial institutions must contact borrowers within 30 days of receiving insurance proceeds to determine how to apply them. If the proceeds cover the mortgage balance, the institution must pay off the loan and disburse any excess to the borrower. If the proceeds are insufficient or the borrower intends to rebuild, the proceeds must be placed in an escrow account. The escrow account must earn interest at a rate not less than the national rate for money market accounts.
Included in complete analysis
- Overview
- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
See what it does, who it affects, and the critical issues in plain language. Free, 30 seconds.