RELEASE: Federal and State Financial Regulatory Agencies Issue Statement on Supervisory Practices Regarding Financial Institutions Affected by Hawaii Wildfires Board of Governors of the Federal Reserve SystemPosted on Aug 17, 2023 in News Releases
DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
KA ʻOIHANA PILI KĀLEPA
JOSH GREEN, M.D.
GOVERNOR | KE KIAʻĀINA
NADINE Y. ANDO
DIRECTOR | KA LUNA HOʻOKELE
FOR IMMEDIATE RELEASE
August 14, 2023
Relief Available for Homeowners Impacted by Maui Wildfires
HONOLULU — Department of Commerce and Consumer Affairs’ (DCCA) Division of Financial Institutions Commissioner Iris Ikeda announced today that relief is available for homeowners impacted by the historic wildfires that have devastated Maui communities.
“Our hearts go out to everyone impacted by this terrible tragedy,” said Banking Commissioner Ikeda. “My office is working closely with our federal counterparts to ensure that individuals and families who lost their homes receive support. We remain committed to dedicating any resources and staff necessary to support the people of Maui as they recover from these devastating fires.”
DCCA offers the following information for addressing the immediate needs of affected homeowners. Guidance will be further provided on longer-term mortgage loan relief programs as it becomes available.
- Borrowers with a Freddie Mac or Fannie Mae mortgage loan may receive an automatic 90-day forbearance, meaning that no payment may be due for at least 90 days. Please contact your mortgage servicer.
- A 90-day forbearance is also available for Federal Housing Administration (FHA) and Veterans Affairs (VA) borrowers; however, homeowners are required to contact their mortgage loan servicer to request the forbearance.
- The Federal Housing Administration (FHA) offers housing counseling to any homeowner regardless of where they received their mortgage loan. Homeowners can contact the FHA housing counseling services at 1-800-569-4287 and the FHA Resource Center at 1-800-304-9320.
- If you are unsure of who owns your mortgage loan, the following tools can assist.
- Utilize Fannie Mae and Freddie Mac mortgage look-up functions.
- Fannie Mae: https://yourhome.fanniemae.com/calculators-tools/loan-lookup
- Freddie Mac: https://myhome.freddiemac.com/resources/loanlookup
- Mortgage Electronic Registration Systems: https://www.mers-servicerid.org/sis/
The following are estimates for the number of homes potentially impacted in Maui County (Lāhainā and Kula areas are still being assessed):
- 5,200 mortgages serviced by Freddie Mac
- 9,800 mortgages serviced by Fannie Mae
- 2,400 mortgages serviced by Ginnie Mae
- 1,300 FHA mortgages (two public housing, two senior living buildings)
- 927 VA mortgages
The Federal Deposit Insurance Corporation (FDIC) has announced a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Hawaiʻi affected by wildfires. The FDIC encourages depository institutions in the affected areas to meet the financial services needs of their communities. A copy of the guidance is available on the FDIC website. Highlights include:
- Encourage banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by wildfires.
- Banks that extend repayment terms, restructure existing loans, or ease terms for new loans in a manner consistent with sound banking practices can contribute to the health of the local community and serve the long-term interests of the lending institution.
- Banks may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery.
- The FDIC also will consider regulatory relief from certain filing and publishing requirements.
Borrowers are encouraged to contact their lenders to identify if financial programs and mortgage deferral programs are available.
If you have questions or need assistance, contact DCCA’s Hawaiʻi Division of Financial Institutions at 808-586-2820 or at [email protected].
Department of Commerce and Consumer Affairs
Email: [email protected]
Phone: (808) 586-7582