Consumer complaint received 2026-01-13 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Trying to communicate with the company to fix an issue with the loan closing
Company: BANK OF HAWAII CORPORATION
State: HI

Complaint narrative:
Account Details : Mortgage loan with Bank of Hawaii, XXXX XXXX : XXXX. 

Borrower : XXXX XXXX XXXX. Property Address : XXXX XXXX XXXX XXXX XXXX XXXX. I am XXXX XXXX, the ex-wife and current owner of the property via a trust deed, authorized by the borrower to receive account information ( he provided my SSN and DOB to the bank ).

Description of the Issue : Bank of Hawaii is improperly refusing to accept or process a full third-party payoff of my ex-husband 's mortgage unless the deed/title to the property is transferred back to match the borrower 's name. This requirement is not mandated by federal law ( e.g., Truth in Lending Act/Regulation Z, 1026.36 ( c ) ) or Hawaii state law ( e.g., HRS 506-8 ), which require servicers to accept valid full payoffs and issue a Satisfaction of Mortgage upon satisfaction, regardless of current title holder. The mortgage is a separate debt obligation from the deed, and third-party payoffs are standard, especially in divorce settlements. This appears to be a servicing error under RESPA/Regulation X ( 1024.35 ), as it imposes an unreasonable restriction on payoff acceptance. 

Timeline of Events : Date, XX/XX/XXXX ] : Divorce finalized in Hawaii XXXX XXXX, XXXX XXXX, Case No. XXXX. The decree orders the sale of our XXXX condominium with proceeds allocated to me to fully pay off this mortgage on the XXXX XXXX, allowing me to retain the property free and clear via trust deed. 
XX/XX/XXXX : XXXX condo sold ; escrow disbursed proceeds to my attorney 's client trust account, where funds are held specifically for this payoff. 
XX/XX/XXXX : Obtained official payoff quote from Bank of Hawaii, amount $ XXXX. 
XX/XX/XXXX : Contacted Bank of Hawaii Mortgage Servicing ( via phone to coordinate third-party payoff from my attorney 's office. Provided court order, authorization details, and proof of funds. 
XX/XX/XXXX Bank informed me they require the deed to be in the borrower 's ( ex-husband 's ) name before accepting payoff, citing internal policy. This delays satisfaction of the court-ordered settlement and risks ongoing interest accrual. 
XX/XX/XXXX : Sent written letter to bank notifying of intent to pay off, referencing court order, and asserting no legal basis for deed requirement. Requested confirmation, updated quote, and account statements. No resolution yet. 
Steps Taken to Resolve : I have communicated with the bank and explained the legal context. 

Impact : This refusal hinders compliance with the court order, causes unnecessary delays and potential financial harm ( e.g., extra interest ), and prevents clear title for my trust. It may violate federal servicing rules by not providing/accepting accurate payoff without unreasonable barriers.

Requested Resolution : Investigate and correct the error by confirming acceptance of the third-party payoff without requiring deed changes. 
Provide an updated payoff quote and process the payment promptly upon receipt. 
Issue and record the Satisfaction of Mortgage/Release of Lien immediately after payoff. 
Waive any additional fees/interest due to this delay. 
Confirm in writing that the account is satisfied and closed. 
Attachments : payoff quote, correspondence with bank, XXXX XXXX, my driver license.

Company response to consumer: Closed with explanation