The Mortgage Rescue Fraud Prevention Act has been a heavy burden on REALTORS®. Many have struggled with the ambiguity of the law and even more so with the inability to help clients. This especially held true during these tough economic times where help in preventing foreclosures with short sales is needed most.

HAR has successfully amended the law.  See how:

The Mortgage Rescue Fraud Prevention Act ("MRFPA") was passed by the Hawai'i State Legislature as Act 137 during the 2008 legislative session, and became effective on June 3, 2008. The Act's intent is to protect homeowners who are in financial difficulty from unscrupulous persons who essentially "steal their equity" under the guise of rescuing them from foreclosure.

Click here to read Act 137 >>

Click here for a Narrative Summary and FAQ >>

On May 20, 2009, Governor Linda Lingle signed a new law (Act 66) which amended Act 137 in two important ways. First, licensed real estate brokers and salespersons acting within the scope of their licenses are exempt from the definition of "distressed property consultant."

Second, to qualify for this exemption the listing agent cannot acquire an ownership interest in the distressed property, directly or indirectly, within 365 days after a listing agreement.

Click here for full discussion and FAQ >>

Watch a podcast video to get a full understanding of the law. Click here to watch the “ABCs” of Act 66 or click the video below.

Video: The "ABCs" of Act 66

June 12, 2009

In this four-part video podcast, James M.K. Stone, Jr., Esq. discusses changes to the Mortgage Rescue Fraud Prevention Law (Act 66 of the 2009 Legislature), modifications to HAR's standard forms reflecting changes from the new law, and the impact of Act 66 on REALTORS®. In addition, he addresses some frequently asked questions by REALTORS®.

HAR has developed addendum forms for both the Exclusive Right to Sell Listing Agreement and the Purchase Contract that should be used in short sale and distressed property situations. These addenda require the seller to notify the brokerage firm immediately if the property in question becomes distressed and the seller is using a distressed property consultant, even if the property was not distressed at the time of the listing. To the extent you are unsure whether to use any of these forms in your transaction; you should consult with your broker and firm attorney.

Click here to see the new forms which include:

QUICK LINKS:

• View the Act 66 Video

• Act 66: Frequently Asked Questions

• Act 66: Special Release Standard Forms

• Act 66: Myths and Facts

ARCHIVED:

• Act 137: Summary and FAQ

• Read Act 137

• Pacific Business News Article (November 14, 2008)