New legislation in Hawaii may force Fannie Mae to restart repossessions of foreclosed homes because of potential title insurance issues, according to a notice sent to mortgage servicers Friday. Hawaii Governor Neil Abercrombie signed SB 651 into law in May. It allows borrowers to dispute foreclosure cases brought against them and requires servicers to pursue the cases through the courts. The previously nonjudicial foreclosure state is now considered a judicial one. Fannie directed its mortgage servicers to convert current and future nonjudicial foreclosures to the courts. It established a maximum allowable foreclosure fee for Hawaii foreclosures at $2,200. Fannie notified its two attorney network law firms in the state Routh, Crabtree & Olsen and Clay, Chapman, Iwamura, Pulice & Nervell. “Due to potential title insurance issues, Fannie Mae may be required to eliminate certain recent REO acquisitions that resulted from non-judicial foreclosures,” according to the notice. “Upon being notified of any eliminations, servicers must immediately restart the matters as judicial foreclosures.” Write to Jon Prior. Follow him on Twitter @JonAPrior.