Monday, April 22, 2024
Hawai'i Free Press

Current Articles | Archives

Thursday, March 21, 2024
Mortgage Delinquencies Spike After Lahaina Fires
By UHERO @ 6:38 PM :: 1257 Views :: Maui County, Hawaii Statistics

Delinquencies have spiked in the aftermath of the Maui wildfires

by Daniela Bond-Smith, UHERO, March 21, 2024

The devastating Maui wildfires destroyed most of Lahaina and displaced thousands of residents. But many Lahaina homeowners still have mortgages on their properties despite not having a home to go back to. As of the 2020 Census, almost three-quarters (74%; 1309 out of 1773) of Lahaina homeowners did not own their home free and clear. Even with various housing assistance programs in place, additional costs for temporary shelter and daily expenses are mounting for displaced West Maui residents, and it is no surprise that many of them struggle to make regular mortgage payments. 

UHERO analyzed proprietary loan-level data from Black Knight to report on the number of excess delinquencies since the Maui wildfires up until the end of November 2023. Figure 1a shows both the number of loans that have become newly delinquent in a given month and the number of total delinquencies by month in zip code 96761, which includes Lahaina and Kaanapali. A sharp spike is evident following the August 8 wildfires, peaking in September. In total, 296 mortgages have been delinquent sometime in the period between August and November 2023; only 17 of which had already been delinquent in July 2023 prior to the fires. Figure 1b shows that the September 2023 jump in delinquencies is by far the most severe in recent history, far surpassing the highest peaks at the height of the Covid pandemic in 2020. Not only is the September 2023 monthly increase of new delinquencies substantially higher than Covid-era monthly delinquencies counts, but also the total number of delinquent loans exceeds the November 2020 Covid peak.

While new delinquencies declined in October and November 2023, the total stock of delinquent loans remains high. Further data analysis shows that once mortgages in Lahaina had become delinquent, homeowners tended to remain unable to make payments. Only 30% of the mortgages that had become delinquent in the aftermath of the Maui wildfires have become current again by November 2023, the end of the reporting period. All the while, arrears balances have climbed over time, as shown in Figure 2. The median arrears balance for Lahaina mortgages that have become delinquent since the Maui wildfires and remained delinquent for four months was $9,360. With the majority of mortgages remaining delinquent over time, the balance in arrears will keep rising. Over the 4-month period observed in the data, the total arrears balance for mortgages in Lahaina that have become delinquent since the Maui wildfires already stands at more than $1,200,000. Clearly the observed time series is short and more data is needed to get a clearer picture of future trends. However, given the overall uncertainty of the disaster recovery, it is likely that for many of the affected families financial difficulties remain for the foreseeable future.

read … Full Report With Images

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT