HUD Housing Waivers and FEMA Disaster Declarations Update

Please see the recent regulatory updates below that Padgett Law Group wanted to highlight:

HUD Housing Waivers for Single Family:

• Handbook 4000.1 Waiver of Nonjudicial Foreclosure of HECMs in Washington State: https://www.hud.gov/sites/default/files/SFH/documents/HB-Waiver-Judicial-Foreclosure-2.pdf

“For HECM only: Under Appendix 6.0, State Code 56, Washington: waive “Nonjudicial” as the "Preferred Method of Foreclosure" and “Recording of Notice of Trustee’s Sale" as the “First Legal Action to Initiate Foreclosure” provided that the foreclosure attorney's fees do not exceed $5,950. Foreclosure actions in process using the nonjudicial method may request an extension in HERMIT to convert to a judicial foreclosure action.

Background Behind the Waiver:

• The Washington State Supreme Court decision in Vargas v. RRA CP Opportunity Trust 1 has created legal uncertainty regarding the use of nonjudicial foreclosure processes for Home Equity Conversion Mortgages (HECMs) secured by properties located in Washington State. As a result, Mortgagees may be required to proceed through judicial foreclosure actions to comply with Washington State law.
• Handbook 4000.1 currently identifies Washington State as a nonjudicial foreclosure state. Approval of this waiver will permit Mortgagees servicing HECMs secured by properties located in Washington State to proceed with judicial foreclosure actions consistent with state law requirements.”

Purpose of the Waiver:

• “Under Automatic Extensions for Foreclosure Initiation Time Frame for Loss mitigation Option (III.A.2.p.i(D)(2)) bullet two: the conjunction "and" Under Automatic Extensions for Foreclosure Initiation Time Frame for Loss mitigation Option (III.A.2.p.i(D)(2)) bullet three: "initiated foreclosure action after reviewing the Borrower for other Loss Mitigation Options from the date the Borrower defaulted under a Loss Mitigation Option or a TPP Agreement failed."
• “HUD has determined that it is appropriate to waive this requirement to provide Mortgagees flexibility in administering foreclosure timelines that may affect the timing and implementation of loss mitigation activities and foreclosure initiation notices. This serves to avoid unintended foreclosure outcomes and to ensure that Mortgagees provide timely, consistent information to Borrowers regarding available loss mitigation options, and follow applicable foreclosure time frames. It also provides adequate time to complete a loss mitigation option following a successful period of Forbearance.”

FEMA Major Disaster Declarations Declared on June 30, 2026:

• https://www.fema.gov/disaster/4917
  Idaho Severe Storms, Straight-line Winds, Flooding, Landslides, and Mudslides
  Incident Period: March 11, 2026 - March 15, 2026
  Major Disaster Declaration declared on June 30, 2026
• https://www.fema.gov/disaster/4918
  Pueblo of Acoma Severe Storms and Flooding (DR-4918)
  Incident Period: September 28, 2025 - September 29, 2025
  Major Disaster Declaration declared on June 30, 2026
• https://www.fema.gov/disaster/4919
  Mashpee Wampanoag Tribe Severe Winter Storm and Snowstorm (DR-4919)
  Incident Period: February 22, 2026 - February 23, 2026
  Major Disaster Declaration declared on June 30, 2026
• https://www.fema.gov/disaster/4920
  Nebraska Wildfires (DR-4920-NE)
  Incident Period: March 12, 2026 - April 2, 2026
  Major Disaster Declaration declared on June 30, 2026
• https://www.fema.gov/disaster/4921
  Guam Super Typhoon Sinlaku (DR-4921-GU)
  Incident Period: April 11, 2026 - April 18, 2026
  Major Disaster Declaration declared on June 30, 2026
• https://www.fema.gov/disaster/4922
  Mississippi Severe Storms, Straight-line Winds, Tornadoes, and Flooding (DR-4922-MS)
  Incident Period: May 6, 2026 - May 7, 2026
  Major Disaster Declaration declared on June 30, 2026
• https://www.fema.gov/disaster/4923
  Wisconsin Severe Storms, Tornadoes, and Flooding (DR-4923-WI)
  Incident Period: April 13, 2026 - April 23, 2026
  Major Disaster Declaration declared on June 30, 2026
• https://www.fema.gov/disaster/4924
  Missouri Severe Storms, Tornadoes, and Flooding (DR-4924-MO)
  Incident Period: April 23, 2026 - April 28, 2026
  Major Disaster Declaration declared on June 30, 2026