HUD Maui Foreclosure Moratorium


On Nov. 9, HUD issued lender letter re Maui foreclosure moratorium.


  • HUD issued Lender Letter 2023-10 to extend foreclosure moratoriums in Maui, Hawaii.
  • This foreclosure extension in applicable to all home loans guaranteed by Section 184A.
  • Properties guaranteed by the Section 184A program are subject to a moratorium on foreclosure through May 6, 2024 for new and current 184A mortgage assignments
  • Follows recent government relief as a result of Maui fires, see #181697, #182481.
  • Background
  • Section 184A home loans are a mortgage product offered to Native Hawaiian islanders.
  • On Aug. 10, 2023, President Joseph R. Biden declared Maui County, Hawaii a major disaster area due to the wildfires, with HUD imposing a 90-day foreclose moratorium.
  • HUD’s current automatic foreclosure moratorium is set to first expire on Nov. 8, 2023.
  • Extension of Moratorium
  • Due to the extent of the devastation from the wildfires and the unique geographic location of Maui, HUD is extending the foreclosure moratorium to allow loss mitigation.
  • Properties guaranteed by the Section 184A program are subject to a moratorium on foreclosure through May 6, 2024 for new and current 184A mortgage assignments.
  • Effectiveness
  • The provisions of this Lender Letter are effective immediately.
  • May 2024 HUD Moratorium Extension
  • On May 29, 2024, HUD issued Letter 2024-04 to extend moratorium until Aug. 4, 2024
  • For properties located in Maui County and guaranteed by the Section 184A program.
  • Moratorium applies to the initiation of Section 184A mortgage assignments to HUD and to the completion of Section 184A mortgage assignments already in process.

Regulators HUD
Entity Types Bank; CNSM; MG Orig; Servicer
Reference Lt 2024-04, 5/29/2024; Lt 2023-10, 11/9/2023
Functions Financial; Legal; Operations
Countries United States of America
Category
State
Products Banking; Loan; Mortgage
Regions Am
Rule Type Final
Rule Date 11/9/2023
Effective Date 8/4/2024
Rule Id 191204
Linked to Rule :181697
Reg. Last Update 5/29/2024
Report Section US Consumer

Last substantive update on 06/04/2024