Section 1 Short title
This Act may be cited as the “Mortgage Relief for Disaster Survivors Act”.
Mortgage Relief for Disaster Survivors Act
A BILL
To provide forbearance assistance during a major disaster or emergency, and for other purposes.
Sec. 2 Forbearance of loan payments for borrowers of properties with Federally backed loans
In general— With respect to any disaster, a borrower with a covered mortgage loan for a property located within the disaster area that is damaged or destroyed by such disaster may request a forbearance on such loan during the covered period.
Request for forbearance— A borrower described in subsection (a) may request a forbearance by—
submitting a written request for a forbearance to the borrower’s servicer; and
providing documentation of verifiable damage or destruction to the property.
Grant of forbearance—
In general— Upon receiving a request for a forbearance from a borrower described in subsection (a), the borrower’s servicer shall grant a forbearance—
for a duration of 180 days; and
regardless of the delinquency status of the covered mortgage loan.
Extension of forbearance— At any time during the forbearance, a borrower may request an extension, of not more than 180 days, of the duration described in paragraph (1).
Right To discontinue— A borrower described in subsection (a) may request to discontinue the forbearance at any time.
Accrual— During any forbearance granted under subsection (c), no fees, penalties, or interest (beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract) shall accrue on the borrower’s account.
Sec. 3 Definitions
In this Act:
Covered mortgage loan— The “covered mortgage loan” means—
a Federally backed mortgage loan; or
a Federally backed multifamily mortgage loan.
Covered period— The term “covered period” means the period beginning on the date of the declaration of a disaster and ending on the date that such declaration ends.
Disaster— The term “disaster” means any major disaster or emergency declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 4121 et seq.).
Disaster area— The term “disaster area” means, with respect to a disaster, any area that is subject to the declaration of such disaster.
Federally backed mortgage loan— The term “Federally backed mortgage loan” includes any loan (other than temporary financing, such as a construction loan) that is—
secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1 to 4 families, including any such secured loan, the proceeds of which are used to prepay or pay off an existing loan secured by the same property; and
purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.
Federally backed multifamily mortgage loan— The term “Federally backed multifamily mortgage loan” includes any loan (other than temporary financing, such as a construction loan) that is—
secured by a first or subordinate lien on residential multifamily real property designed principally for the occupancy of 5 or more families, including any such secured loan, the proceeds of which are used to prepay or pay off an existing loan secured by the same property; and
purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.