Governor Signs Bill Amending the Mortgage Rescue Fraud Prevention Act (Act 137)

May 21, 2009

On Wednesday, May 20, Hawaii Governor Linda Lingle signed Senate Bill 34 into law, which exempts licensed real estate brokers and real estate salespersons who act within the scope of their license from the definition of "distressed property consultant" under the Mortgage Rescue Fraud Prevention Act.

The bill also prohibits a licensed Hawaii real estate broker or salesperson from acquiring an ownership interest in the distressed property, directly or indirectly, within 365 days after a listing agreement for the same distressed property has expired, or is terminated.

The real estate new law will become Act 66 of the 2009 Legislative Session and takes effect immediately.