source:
  type: guide
  id: hud-4000-1-iii-c-hawaiian-home-lands-mortgages-section-247-mortgages
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — c. Hawaiian
    Home Lands Mortgages (Section 247 Mortgages) (10/01/2025)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — c. Hawaiian
    Home Lands Mortgages (Section 247 Mortgages) (10/01/2025).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-c-hawaiian-home-lands-mortgages-section-247-mortgages-full
  canonical_id: hud-4000-1-iii-c-hawaiian-home-lands-mortgages-section-247-mortgages-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — c. Hawaiian
    Home Lands Mortgages (Section 247 Mortgages) (10/01/2025)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — c. Hawaiian
      Home Lands Mortgages (Section 247 Mortgages) (10/01/2025)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'c. Hawaiian Home Lands Mortgages (Section 247 Mortgages) (10/01/2025)
      i. Reporting of Delinquent Mortgages (A) Standard The Mortgagee must report
      in Single Family Default Monitoring System (SFDMS) the Delinquency/Default Status
      Codes that accurately reflect the stage of delinquency or mortgagee action.
      In addition, the Mortgagee must notify the State of Hawaii Department of Hawaiian
      Home Lands (DHHL) each month of: • which Section 247 insured Mortgages on Leaseholds
      of Hawaiian Home Lands are 30 or more Days Delinquent on the last Day of the
      month; and • the status of Mortgages that were reported as Delinquent the previous
      month. (B) Contact Information for Submission of Reports The Mortgagee must
      complete its Default reporting in SFDMS to meet its DHHL reporting requirements.
      (C) HUD’s Loss Mitigation Program The Mortgagee may offer the following Loss
      Mitigation Options to eligible Borrowers with Section 247 Mortgages: • Repayment
      Plans; • Forbearance; • Standalone Loan Modification; and • Outside of the Waterfall
      Loan Modification (OWL). Due to Hawaii state law prohibitions on the placement
      of junior liens on Properties secured by Section 247 Mortgages, the Mortgagee
      must not use Partial Claims with Section 247 Mortgages. ii. Section 247 Assignments
      (A) Standard The Mortgagee may assign the Delinquent insured Mortgage and Note
      to HUD if all of the following conditions are met: • the Mortgage has been in
      Default for 180 Days or more; • when the Mortgage is 90 Days Delinquent, the
      Mortgagee has notified DHHL of the Default in writing; • the Mortgagee has conducted
      or made a reasonable effort to arrange the Interview at least 30 Days before
      the application for assignment is submitted, unless exempt; and III. SERVICING
      AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3.
      Programs and Products - Hawaiian Home Lands Mortgages (Section 247 Mortgages)
      (10/01/2025) Handbook 4000.1 1349 Last Revised: 11/26/2025 • the Mortgagee has
      evaluated the Borrower for loss mitigation in accordance with HUD guidance.
      The Mortgagee must not foreclose on or approve a Pre-Foreclosure Sale (PFS)
      or Deed-in-Lieu (DIL) transaction on Section 247 Mortgages; the only disposition
      option available to the Mortgagee is assignment. (B) Endorsement on Original
      Note To assign the Note to HUD, an authorized agent of the Mortgagee must sign
      the following endorsement on the original Note: “All right, title and interest
      of the undersigned to the within credit instrument is hereby assigned to the
      Secretary of Housing and Urban Development of Washington, D.C., their successors
      and assigns.” (C) Lost Note Affidavit If the original Note cannot be located,
      the Mortgagee must submit the Lost Note Affidavit. iii. Submission of Title
      Evidence Package and Servicing Records for Assignment (A) Standard Prior to
      filing Hawaiian Home Lands Mortgages (Section 247 Mortgages) Claims for insurance
      benefits, the Mortgagee must submit the title evidence package and servicing
      records to HUD for approval. (1) Title Evidence Package The Mortgagee must:
      • mail the original Note endorsed to HUD in the format required by form HUD-27011,
      Single Family Application for Insurance Benefits, Part A, to HUD at: Attn: Section
      247 Assignment Oklahoma City Field Office U.S. Department of HUD 301 NW 6th
      Street, Suite 200 Oklahoma City, OK 73102; and • upload the following into P260:
      • digital copy of the Note showing the most current endorsement to HUD; • Transmittal
      Letter, indicating the name and telephone number of the person HUD is to contact
      for more information about the submission; • Mortgage with evidence of recordation
      by DHHL; • recorded Consent to Mortgage signed by DHHL; III. SERVICING AND LOSS
      MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs
      and Products - Hawaiian Home Lands Mortgages (Section 247 Mortgages) (10/01/2025)
      Handbook 4000.1 1350 Last Revised: 11/26/2025 • recorded intervening assignments
      of Mortgage, if any; • recorded Assignment of Mortgage (AOM) to HUD with required
      warranty; • copy of Borrower’s Homestead Lease and recorded Lease Assignments
      and Amendments, if any; and • recorded Mortgage Insurance Program Rider to the
      Homestead Lease. (2) Servicing Records The Mortgagee must upload the following
      into P260: • copy of form HUD-27011; • copy of Title Submission Certification;
      • proof of request to endorse fire policy; • mortgage history commencing from
      date of first payment; • copy of signed Management Review Checklist, plus all
      supporting servicing records; • initial DHHL notification letter; and • evidence
      of loss mitigation efforts. (B) HUD Review After receiving the original Note
      and reviewing the title documents and servicing records, HUD will either: •
      issue an assignment acceptance letter to the submitting Mortgagee through P260;
      or • reject the submission in P260 and: o if the title documents contain deficiencies,
      HUD will provide the Mortgagee 30 Days to cure such deficiencies; or o if the
      servicing records contain deficiencies, HUD will provide the Mortgagee with
      an explanation for rejection, as applicable. The Mortgagee may appeal the rejection
      in P260. iv. Reconveyance to Mortgagee If the claim has been paid and HUD does
      not accept assignment of the Mortgage and Note, HUD will: • reassign the Mortgage
      to the Mortgagee; • reject the submission in P260; and • request repayment of
      the claim amount. If the claim has not yet been paid and HUD does not accept
      assignment of the Mortgage and Note, HUD will return the submitted original
      documents to the Mortgagee. III. SERVICING AND LOSS MITIGATION A. Title II Insured
      Housing Programs Forward Mortgages'
  judgment: false
