Hawaii HB1047 regulates the handling of insurance proceeds related to mortgage loans, including interest accrual and disbursement rules.

Hawaii HB1047 mandates that financial institutions and mortgage servicers must hold insurance proceeds in interest-bearing accounts if not immediately disbursed to borrowers for property rebuilds. The interest rate must be at least the national rate for money market accounts. If the insurance proceeds exceed the mortgage balance, the excess must be disbursed to the borrower. The bill also requires mortgage servicers to provide clear, understandable statements of account and to follow specific procedures for handling and disbursing insurance proceeds.

Hawaii HB1047 regulates the handling of insurance proceeds related to mortgage loans, including interest accrual and disbursement rules.

Hawaii HB1047 mandates that financial institutions and mortgage servicers must hold insurance proceeds in interest-bearing accounts if not immediately disbursed to borrowers for property rebuilds. The interest rate must be at least the national rate for money market accounts. If the insurance proceeds exceed the mortgage balance, the excess must be disbursed to the borrower. The bill also requires mortgage servicers to provide clear, understandable statements of account and to follow specific procedures for handling and disbursing insurance proceeds.