Notice: Hawaii Legislative Changes Affecting Non-Judicial Foreclosures (06/10/11)

Notice: Hawaii Legislative Changes Affecting Non-Judicial Foreclosures (06/10/11)

 This Notice pertains to existing and future foreclosure referrals in the State of Hawaii. Recently, the Hawaii legislature passed SB651, 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 judicialforeclosures.

• Effective immediately, all pending Fannie Mae non-judicial foreclosures in Hawaii that have not proceeded to sale should bedismissed and converted to judicial foreclosures.

Fannie Mae is establishing a maximum allowable foreclosure fee for Hawaii judicial foreclosures of $2,200. (Hawaii should just raise the filing fees) This fee applies to all new Hawaii foreclosures as well as any pending Hawaii foreclosures that must be restarted judicially, and has been updated inthe Allowable Attorney and Trustee Foreclosure Fees document on eFannieMae.com.

*Due to potential title insurance issues, Fannie Mae may be required to eliminate certain recent REO acquisitions that resultedfrom non-judicial foreclosures.* Upon being notified of any eliminations, servicers must immediately restart the matters as judicialforeclosures.

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.

* Ahhhh - an admission of guilt maybe - fraudulent documents in the Bureau of Conveyance and the courts maybe??

Wouldn't you think that since we own them that they would want to reconstruct the loans rather than go to court?!