A HUD press release detailed the regulatory change:
FHA issued a waiver regarding early payment default review requirements for properties impacted by the California wildfires. FHA currently requires lenders to select all early payment defaults on a monthly basis and perform a loan file compliance review to ensure compliance with FHA Single Family origination and underwriting requirements. Per the waiver, the early payment default review requirement is waived for FHA-insured mortgages that: (1) are in the Presidentially Declared Major Disaster Areas for California Wildfires and Straight-Line Winds (DR-4856-CA); (2) have a mortgage closing date before the “incident period” start date of January 7, 2025; and (3) entered early payment default between the dates of February 1, 2025, and July 31, 2025. Lenders and servicers must continue to provide borrowers in the affected areas with appropriate FHA Loss Mitigation options, report delinquencies in the Single Family Default Monitoring System, and meet all other applicable servicing and loss mitigation requirements. The waiver went into effect April 1, 2025.
In other words, if homeowners fall behind on their mortgage payments, they will not have to begin a process of acknowledging that they have defaulted on the loan — at least not until the end of July. This will help some homeowners keep their homes, despite the financial pressure and economic losses associated with the fires.
Turner conducted an emotional visit to the Pacific Palisades and Altadena areas last month.
He and his staff remain closely involved in the rebuilding effort, though they may need additional authority from Congress to provide more help, such as low-interest loans for rebuilding to cover the gap between insurance payments and construction costs.
Joel B. Pollak is Senior Editor-at-Large at Breitbart News and the host of Breitbart News Sunday on Sirius XM Patriot on Sunday evenings from 7 p.m. to 10 p.m. ET (4 p.m. to 7 p.m. PT). He is the author of The Agenda: What Trump Should Do in His First 100 Days, available for pre-order on Amazon. He is also the author of The Trumpian Virtues: The Lessons and Legacy of Donald Trump’s Presidency, now available on Audible. He is a winner of the 2018 Robert Novak Journalism Alumni Fellowship. Follow him on Twitter at @joelpollak.
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