Hawaii Regulators Warn Residents of Mortgage Scams

State officials are alerting homeowners to fraudulent schemes targeting those struggling with mortgage payments.

Updated on Oct. 21, 2026 in Residential

Screen-print poster illustration of a weathered wooden mailbox and hibiscus flowers, representing consumer fraud warnings in Hawaii. — Hawaii regulators issued a consumer alert regarding a rise in fraudulent mortgage debt relief schemes targeting residents facing financial hardship. AI Illustration. Upload story photo >

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Hawaii regulators have issued a warning about a rise in mortgage debt relief scams targeting residents. These fraudulent operations frequently use unsolicited outreach to exploit homeowners facing financial stress.

Why it matters

Borrowers are currently vulnerable due to high mortgage rates, persistent inflation, and unexpected financial burdens like medical bills or job loss. These factors increase the likelihood that desperate homeowners may fall for predatory offers.

Mortgage delinquency rates climbed past the 4% threshold during the first half of 2026. The Mortgage Bankers Association projects that 30-year mortgage rates will remain above 7% through 2027.

The players

Mortgage Bankers Association

This national trade organization represents the real estate finance industry and provides data on mortgage delinquency trends and interest rate forecasts.

Hawaii Foreclosure Information Center

This state-run agency provides resources and guidance to Hawaii residents navigating housing financial distress and foreclosure proceedings.

The details

Scammers target vulnerable mortgage holders through phone calls, text messages, letters, and in-person visits to offer fake loan modifications or foreclosure prevention. Warning signs of these illegal activities include demands for upfront fees paid via wire transfer, cash apps, or checks, as well as instructions to stop communicating with legitimate lenders.

The serious mortgage delinquency rate rose above 4% during the first half of 2026.
30-year mortgage rates are expected to stay above 7% through 2027.

Culture Shift

Rising mortgage delinquency rates reflect a broader trend where households are forced to navigate higher borrowing costs and stricter financial constraints. This environment creates a vacuum where predatory actors often attempt to exploit the financial insecurity of the public.

Residents should never pay upfront fees for loan modifications or sign over property deeds to unknown parties. Those struggling to make payments should contact their actual lender or official state housing resources rather than responding to unsolicited solicitations.

The takeaway

Scammers prey on the anxiety caused by high interest rates and financial instability. Always verify the identity of anyone offering debt relief and never share sensitive financial or property information with unvetted companies.