Hawaii Legislative Changes Affecting Non-Judicial Foreclosures June 10, 2011
Notice sent out to Mortgage Servicers by Fannie Mae
This Notice pertains to existing and future foreclosure referrals in the State of Hawaii. Recently, the Hawaii legislature passed SB 651, effective as of May 5, 2011. In response to this new law, Fannie Mae is directing servicers as follows:
- Effective immediately and until further notice, all new Fannie Mae foreclosures in Hawaii must be commenced as judicial foreclosures.
- Effective immediately, all pending Fannie Mae non-judicial foreclosures in Hawaii that have not proceeded to sale should be dismissed and converted to judicial foreclosures.
Fannie Mae is establishing a maximum allowable foreclosure fee for Hawaii judicial foreclosures of $2,200. This fee applies to all new Hawaii foreclosures as well as any pending Hawaii foreclosures that must be restarted judicially, and has been updated in the Allowable Attorney and Trustee Foreclosure Fees document on www.eFannieMae.com.
Due to potential title insurance issues, Fannie Mae may be required to eliminate certain recent REO acquisitions that resulted from non-judicial foreclosures. Upon being notified of any eliminations, servicers must immediately restart the matters as judicial foreclosures.
Fannie Mae has notified its two Retained Attorney Network law firms of its intentions with respect to pending and future Hawaii foreclosures. Those firms are Routh, Crabtree & Olsen, PS, and Clay, Chapman, Iwamura, Pulice & Nervell, AP/ALC. Servicers are reminded that Fannie Mae foreclosure referrals in Hawaii must go to one of these two law firms in the network. Servicers are responsible, however, for managing the foreclosure process, including any foreclosures that have previously been referred to law firms that are not members of the Fannie Mae Retained Attorney Network.
Servicers should contact their Servicing Portfolio Manager, Servicing Consultant, or the National Servicing Organization’s Servicer Solution Center at 1-888-FANNIE5 (888-326-6435) with any questions on this Notice.