Several federal housing agencies and the Government National Mortgage Association (Ginnie Mae) came together to announce ongoing support for those struggling in the aftermath of the Maui County, Hawaii wildfires. These agencies included the Federal Housing Administration (FHA), Federal Housing Finance Agency (FHFA), the U.S. Department of Agriculture (USDA), and the U.S. Department of Veterans Affairs (VA).

“We stand in solidarity with the people of Maui and offer our deepest condolences and sympathies to those who have lost loved ones, homes, businesses, and communities to these devastating fires,” the agencies stated. “As fire suppression and search and rescue efforts continue, federal housing agencies are engaging with state officials and local partners, and in interagency efforts, to monitor the impact to households and the housing sector and ensure awareness of available disaster assistance for homeowners.”

Homeowners and renters were advised to contact U.S. Department of Housing and Urban Development (HUD)–certified housing counselors, who are prepared and well-trained to provide guidance. Those who own their homes are encouraged to work with their mortgage servicer for disaster assistance.

“If you have a home with a mortgage insured by FHA in the Maui County disaster area and are unable to make your mortgage payments, immediate relief is available,” the agencies stated in their release. “Homeowners are likely to have a range of options that can help them avoid the need to default on their mortgage or to sell their home or land. Contact your mortgage servicer for assistance as soon as practical.”

FHA-approved mortgage servicers doing business in Maui County should use every permissible means to contact affected homeowners who may need mortgage payment relief and are allowed to offer temporary forbearance to borrowers unless the borrower affirmatively declines the offer. The agencies also reminded these servicers there is a 90-day moratorium on foreclosures in Maui County with a start date of Aug. 10, when President Joe Biden declared it a major disaster area.

Servicers of home equity conversion mortgages (HECMs) also must implement a 90-day extension period for all HECMs in the disaster areas with unpaid property charges.

FHA-approved mortgage lenders were encouraged to prepare assistance to homeowners in the coming weeks and months by familiarizing loan officers and operational teams with FHA’s Disaster Mortgage, 203(h). This product provides up to 100 percent financing on a new mortgage meant to be used for rebuilding in the same location, or for the purchase of a home in a new location. This offering also provides financing or refinancing that includes the cost of structural and non-structural home repairs.

Ginnie Mae encouraged impacted issuers of its mortgage-backed securities collateralized by loans in Maui County guaranteed or insured by the FHA, VA, USDA, and rural and tribal programs to reach out if they are in need of assistance.

“We are committed to providing homeowners flexibilities and assistance so they feel the security of knowing they will have the option to return and rebuild when it is safe to do so,” the agencies stated. “This community will need all the support it can get, including federal aid and private sector involvement. FHFA through Fannie Mae and Freddie Mac, Department of Veterans Affairs, USDA, Ginnie Mae and FHA have tools to help lenders, servicers, and issuers meet the needs of homeowners in this difficult time. Additionally, USDA and HUD are working to provide assistance and resources to tenants who have been displaced in federally assisted multifamily rental homes, as well as impacted owners and operators.”

FHFA’s Freddie Mac and Fannie Mae (the GSEs), announced the following guidelines:

• Mortgage servicers are authorized to offer a forbearance plan for up to 90 days – even without establishing contact with the homeowner – if the servicer believes the home was affected by the disaster.
• Homeowners affected by a disaster are often eligible to reduce or suspend their mortgage payments for up to 12 months by entering into a forbearance plan with their mortgage servicer. During this temporary reduction or pause in payments, homeowners will not incur late fees and foreclosure and other legal proceedings are suspended.
• Following a forbearance plan, there are a number of options available to potentially help homeowners catch up on missed payments, including disaster payment deferral or flex modification.

The USDA’s rural housing service stated it is providing immediate servicing relief to borrowers of the Single-Family Housing Guaranteed Loan Program (SFHGLP) mortgages impacted by Maui wildfires. Servicers of these products are required to put a moratorium in place for borrowers whose properties or place of employment is directly impacted by the wildfires; must immediately suspend all foreclosure actions against borrowers in the affected area (including the initiation of new foreclosures, as well as those already in progress); which will expire no earlier than 180 days after the presidential declaration, unless extended by USDA; and are encouraged to evaluate forbearance options for borrowers in distress as a result of the natural disaster, which can provide mortgage payment relief for up to 12 months.