H.B. 1306: Hawaii’s Proposed HECM Program for Older Hawaiians
H.B. 1306 aims to establish a state-specific Home Equity Conversion Mortgage (HECM) program managed by the Hawaii Housing Finance and Development Corp. (HFDC) to assist older Hawaiians, known as “kupuna,” with the increasing costs of homeownership.
The bill, initially introduced by Iwamoto in January, was referred to multiple committees for further review, slowing down its legislative momentum. With a limited legislative session in Honolulu lasting 60 days, excluding weekends and holidays, the bill faced challenges in moving forward.
Despite efforts to progress the bill, it was confirmed that it would not move forward in this session due to missed deadlines. However, there is a possibility for it to be reconsidered in the next legislative year if the committee chair chooses to do so.
While the bill shared similarities with the existing HECM program, it also introduced provisions for assisting borrowers once their home equity is depleted. This raised concerns within the reverse mortgage industry, prompting further discussions and analysis.
Although there are complexities within the bill that need to be addressed, the decision to pause its progress until at least 2026 leaves room for further evaluation and potential revisions. The National Reverse Mortgage Lenders Association (NRMLA) expressed interest in understanding the bill’s intent and reaching out to its sponsors for clarification.
Notably, this is the second state-level reverse mortgage bill facing obstacles, with Oregon also considering legislation that could impact reverse mortgage lenders. Discussions surrounding the Oregon bill highlighted the need for accuracy in targeting specific products within the industry.
As the future of these bills remains uncertain, ongoing dialogue and collaboration between lawmakers, industry professionals, and stakeholders will be essential in shaping the landscape of reverse mortgage programs at the state level.