HONOLULU (HawaiiNewsNow) - The city is using a new tactic against the owners of illegal vacation rentals on Oahu: getting mortgage lenders to police their clients.

The city says it is also filing more liens against the properties to collect millions in outstanding fines, but enlisting lenders in enforcement could be a simpler process.

Mortgage contracts usually require the property be used in compliance with all federal, state and local laws.

Now the city is informing lenders that their clients are breaking the law.

RELATED POST: City has no mercy for illegal vacation rental operators

Broker Judy Meredith, education chair for the Hawaii Association of Mortgage Brokers, says the lenders have a lot of leverage.

“The potential ramifications could include the lender calling the loan due

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