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 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 on which the declaration ends.
Disaster— The term disaster means—
any major disaster or emergency declared by the President under section 401 or 501, respectively, of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170, 5191); and
any disaster or emergency declared by the Governor of a State or the Chief Executive of an Indian tribal government.
Disaster area— The term disaster area means, with respect to a disaster, any area that is subject to the declaration of the disaster.
Federally backed mortgage loan— The term Federally backed mortgage loan includes any 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 that is—
insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.);
insured under section 255 of the National Housing Act (12 U.S.C. 1715z–20);
guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a, 1715z–13b);
guaranteed or insured by the Department of Veterans Affairs;
guaranteed or insured by the Department of Agriculture;
made by the Department of Agriculture; or
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
is—
insured under section 255 of the National Housing Act (12 U.S.C. 1715z–20);
guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a, 1715z–13b);
guaranteed or insured by the Department of Veterans Affairs;
guaranteed or insured by the Department of Agriculture;
made by the Department of Agriculture; or
purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.
Governor; Indian tribal government; State— The terms Governor, Indian tribal government, and State have the meanings given those terms in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122).
Sec. 3 Forbearance of loan payments for borrowers of properties with Federally backed loans in disaster areas
In general— With respect to any disaster, a borrower with a covered mortgage loan that is secured by a property located within the disaster area may request a forbearance on the covered mortgage loan during the covered period.
Request for forbearance— A borrower described in subsection (a) may request a forbearance on a covered mortgage loan, regardless of the delinquency status of the covered mortgage loan, by—
submitting a request to the borrower’s servicer in writing, over the phone, online, or through any other notification method determined to be eligible by the servicer; and
affirming that the borrower is experiencing a financial hardship.
Grant of forbearance—
In general— Upon receiving a request for a forbearance from a borrower described in subsection (a), the borrower’s servicer shall promptly and without unreasonable delay 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)(A).
Right To discontinue— A borrower described in subsection (a) may request to discontinue a forbearance granted under subsection (c) 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.
Application— This section shall apply to with respect to any disaster declared on or after January 1, 2025.