source:
  type: regulation
  id: hud-4000-1-programs-and-products-hawaiian-home-lands-mortgages-section-
  authority: HUD Handbook 4000.1 — Programs and Products - Hawaiian Home Lands Mortgages (Section 247
    Mortgages) (10/01/2025)
  description: "HUD Handbook 4000.1 section \"Programs and Products - Hawaiian Home Lands Mortgages (Section\
    \ 247 Mortgages)\". Gap-fill (verbatim, title-diff). \n"
obligations:
- id: hud-4000-1-programs-and-products-hawaiian-home-lands-mortgages-section--full
  canonical_id: hud-4000-1-programs-and-products-hawaiian-home-lands-mortgages-section--full
  section: HUD Handbook 4000.1
  description: "Programs and Products - Hawaiian Home Lands Mortgages (Section 247 Mortgages): 3. Programs\
    \ and Products - Hawaiian Home Lands Mortgages (Section 247 Mortgages) (10/01/2025) \n \nc. Hawaiian\
    \ Home Lands Mortgages (Section 247 Mortgages) (10/01/2025) \ni. Reporting of Delinquent Mortgages\
    \ \nThe Mortgagee must report in Single Family Default Monitoring System (SFDMS) \nthe Delinquency/…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Programs and Products - Hawaiian Home Lands Mortgages (Section 247
      Mortgages) (10/01/2025)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: "3. Programs and Products - Hawaiian Home Lands Mortgages (Section 247 Mortgages)\
      \ (10/01/2025) \n \nc. Hawaiian Home Lands Mortgages (Section 247 Mortgages) (10/01/2025) \ni. Reporting\
      \ of Delinquent Mortgages \nThe Mortgagee must report in Single Family Default Monitoring System\
      \ (SFDMS) \nthe Delinquency/Default Status Codes that accurately reflect the stage of delinquency\
      \ \nor mortgagee action. \nIn addition, the Mortgagee must notify the State of Hawaii Department\
      \ of Hawaiian \nHome Lands (DHHL) each month of: \n• which Section 247 insured Mortgages on Leaseholds\
      \ of Hawaiian Home \nLands are 30 or more Days Delinquent on the last Day of the month; and \n•\
      \ the status of Mortgages that were reported as Delinquent the previous month. \n(B) Contact Information\
      \ for Submission of Reports \nThe Mortgagee must complete its Default reporting in SFDMS to meet\
      \ its DHHL \nreporting requirements. \n(C) HUD’s Loss Mitigation Program \nThe Mortgagee may offer\
      \ the following Loss Mitigation Options to eligible \nBorrowers with Section 247 Mortgages: \n•\
      \ Repayment Plans; \n• Forbearance; \n• Standalone Loan Modification; and \n• Outside of the Waterfall\
      \ Loan Modification (OWL). \nDue to Hawaii state law prohibitions on the placement of junior liens\
      \ on Properties \nsecured by Section 247 Mortgages, the Mortgagee must not use Partial Claims with\
      \ \nSection 247 Mortgages. \nii. Section 247 Assignments \nThe Mortgagee may assign the Delinquent\
      \ insured Mortgage and Note to HUD if all \nof the following conditions are met: \n• the Mortgage\
      \ has been in Default for 180 Days or more; \n• when the Mortgage is 90 Days Delinquent, the Mortgagee\
      \ has notified DHHL \nof the Default in writing; \n• the Mortgagee has conducted or made a reasonable\
      \ effort to arrange the \nInterview at least 30 Days before the application for assignment is submitted,\
      \ \nunless exempt; and \n\n3. Programs and Products - Hawaiian Home Lands Mortgages (Section 247\
      \ Mortgages) (10/01/2025) \n \n• the Mortgagee has evaluated the Borrower for loss mitigation in\
      \ accordance \nwith HUD guidance. \nThe Mortgagee must not foreclose on or approve a Pre-Foreclosure\
      \ Sale (PFS) or \nDeed-in-Lieu (DIL) transaction on Section 247 Mortgages; the only disposition\
      \ \noption available to the Mortgagee is assignment. \n(B) Endorsement on Original Note \nTo assign\
      \ the Note to HUD, an authorized agent of the Mortgagee must sign the \nfollowing endorsement on\
      \ the original Note: “All right, title and interest of the \nundersigned to the within credit instrument\
      \ is hereby assigned to the Secretary of \nHousing and Urban Development of Washington, D.C., their\
      \ successors and assigns.” \n(C) Lost Note Affidavit \nIf the original Note cannot be located, the\
      \ Mortgagee must submit the Lost Note \nAffidavit. \niii. Submission of Title Evidence Package and\
      \ Servicing Records for Assignment \nPrior to filing Hawaiian Home Lands Mortgages (Section 247\
      \ Mortgages) Claims for \ninsurance benefits, the Mortgagee must submit the title evidence package\
      \ and \nservicing records to HUD for approval. \n(1) Title Evidence Package \n• mail the original\
      \ Note endorsed to HUD in the format required by form \nHUD-27011, Single Family Application for\
      \ Insurance Benefits, Part A, to \nHUD at: \nAttn: Section 247 Assignment \nOklahoma City Field\
      \ Office \nU.S. Department of HUD \n301 NW 6th Street, Suite 200 \nOklahoma City, OK 73102; and\
      \ \n• upload the following into P260: \n• digital copy of the Note showing the most current endorsement\
      \ to \nHUD; \n• Transmittal Letter, indicating the name and telephone number of the \nperson HUD\
      \ is to contact for more information about the submission; \n• Mortgage with evidence of recordation\
      \ by DHHL; \n• recorded Consent to Mortgage signed by DHHL; \n\n3. Programs and Products - Hawaiian\
      \ Home Lands Mortgages (Section 247 Mortgages) (10/01/2025) \n \n• recorded intervening assignments\
      \ of Mortgage, if any; \n• recorded Assignment of Mortgage (AOM) to HUD with required \nwarranty;\
      \ \n• copy of Borrower’s Homestead Lease and recorded Lease \nAssignments and Amendments, if any;\
      \ and \n• recorded Mortgage Insurance Program Rider to the Homestead Lease. \n(2) Servicing Records\
      \ \nThe Mortgagee must upload the following into P260: \n• copy of form HUD-27011; \n• copy of Title\
      \ Submission Certification; \n• proof of request to endorse fire policy; \n• mortgage history commencing\
      \ from date of first payment; \n• copy of signed Management Review Checklist, plus all supporting\
      \ \nservicing records; \n• initial DHHL notification letter; and \n• evidence of loss mitigation\
      \ efforts. \n(B) HUD Review \nAfter receiving the original Note and reviewing the title documents\
      \ and servicing \nrecords, HUD will either: \n• issue an assignment acceptance letter to the submitting\
      \ Mortgagee through \nP260; or \n• reject the submission in P260 and: \no if the title documents\
      \ contain deficiencies, HUD will provide the \nMortgagee 30 Days to cure such deficiencies; or \n\
      o if the servicing records contain deficiencies, HUD will provide the \nMortgagee with an explanation\
      \ for rejection, as applicable. \nThe Mortgagee may appeal the rejection in P260. \niv. Reconveyance\
      \ to Mortgagee \nIf the claim has been paid and HUD does not accept assignment of the Mortgage and\
      \ \nNote, HUD will: \n• reassign the Mortgage to the Mortgagee; \n• reject the submission in P260;\
      \ and \n• request repayment of the claim amount. \nIf the claim has not yet been paid and HUD does\
      \ not accept assignment of the Mortgage \nand Note, HUD will return the submitted original documents\
      \ to the Mortgagee."
    drafter_attestation: Verbatim section from snapshot 8c03836f77f317e1; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
