Pursuant to our yearly audit of state-specific disclosures, we will be creating the following new documents for loans secured by property located in Hawaii:
HI Commitment Agreement (Cx18836)
Haw. Rev. Stat. Ann. § 431:13-104(b) sets forth the following restriction (in relevant part):
“No person who lends money or extends credit may:
(1) Solicit insurance, after a person indicates interest in securing a loan or credit extension, until such person has received a commitment in writing from the lender as to a loan or credit extension. The requirement for a commitment shall not apply in cases where the premium for the required insurance is to be financed as part of the loan or extension of credit involving personal property transactions.”
In order to help clients who solicit insurance be in compliance with this restriction, we will now be providing, upon request, Cx18836. Once requested, this document will print under the following conditions:
- “Commitment or Rate Lock Initiated” equals “Yes”
- “Document Package Type” equals “Initial Disclosure”
- “State Code” equals “Hawaii”
Cx18836 contains generic commitment information (e.g. what the terms of the loan are, under what conditions the loan may not close, the amount of the commitment fee [if any], how long the agreement will remain in effect, etc.).
HI Credit Insurance Disclosure (Cx18837)
Haw. Rev. Stat. Ann. § 431:10B-112 requires the following:
“When credit life insurance or credit disability insurance is required as additional security for any indebtedness, the creditor shall give the debtor written notice of the debtor’s option to furnish the required insurance through existing policies of insurance owned or controlled by the debtor or of procuring and furnishing the required coverage through any insurer authorized to transact an insurance business in this State.”
We will now be providing, upon request, Cx18837 for clients who require credit insurance in connection with their loans. The body of this document consists of one paragraph informing the borrower of his right to furnish credit insurance through existing policies or through new policies from any insurer licensed in Hawaii.
Once requested, this document will print under the following conditions:
- “Credit Life, Accident and Health and Unemployment Insurance” equals any of the following:
o “Credit Life”
o “Credit Life and Accident and Health”
o “Credit Life and Unemployment Insurance”
o “Credit Life, Accident and Health, and Unemployment Insurance”
- “Document Package Type” equals “Initial Disclosure”
- “State Code” equals “Hawaii”
These documents are available immediately. If you have any questions or concerns about these documents, please contact Client Support at 1.800.497.3584.
August 7, 2014
DR 122414