SB1142 regulates the disbursement of insurance proceeds for damaged or destroyed residential real estate in Hawaii.

SB1142 amends Hawaii law to establish procedures for mortgage servicers to follow when disbursing insurance proceeds for damaged or destroyed residential real estate. Borrowers must submit a repair or rebuild plan to the mortgage servicer for approval. If approved, the servicer must disburse funds based on specific milestones, with different rules for borrowers who are current on payments versus those who are delinquent. The servicer must also disclose the mortgage interest rate and maintain communications with the borrower. The act does not affect pre-existing rights or penalties.

SB1142 regulates the disbursement of insurance proceeds for damaged or destroyed residential real estate in Hawaii.

SB1142 amends Hawaii law to establish procedures for mortgage servicers to follow when disbursing insurance proceeds for damaged or destroyed residential real estate. Borrowers must submit a repair or rebuild plan to the mortgage servicer for approval. If approved, the servicer must disburse funds based on specific milestones, with different rules for borrowers who are current on payments versus those who are delinquent. The servicer must also disclose the mortgage interest rate and maintain communications with the borrower. The act does not affect pre-existing rights or penalties.