Mortgage Relief for Disaster Survivors Act
- Bill Number
- H.R. 2928
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-04-17: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-01-16T09:06:18Z
AI-Generated Summary
Purpose
The Mortgage Relief for Disaster Survivors Act (H.R. 2928) aims to provide temporary relief from mortgage payments for borrowers whose properties are damaged or destroyed in areas affected by a major disaster or emergency declared by the President. It focuses on federally backed loans to help survivors avoid financial hardship during recovery, without adding extra costs like penalties.
Key Provisions
- Eligibility and Request Process: Borrowers with a "covered mortgage loan" (defined below) on a property in a "disaster area" that suffered verifiable damage or destruction can request forbearance (a pause on payments). The request must be written to the loan servicer (the company handling payments) and include proof of damage.
- Granting Forbearance: Upon a valid request, the servicer must approve a 180-day forbearance, even if the loan is already past due. Borrowers can request one 180-day extension during the forbearance period. Borrowers may end the forbearance early if desired.
- No Additional Costs: During forbearance, no fees, penalties, or extra interest (beyond the normal scheduled amount) can be added to the loan balance.
- Definitions:
- Covered mortgage loan: A federally backed loan on residential property (1-4 family units for single-family; 5+ units for multifamily) that is purchased or securitized (bundled and sold as investments) by Fannie Mae or Freddie Mac (government-sponsored enterprises that support the housing market). Excludes temporary loans like construction financing.
- Covered period: Starts on the date the President declares a major disaster or emergency under the Stafford Act (a federal law for disaster aid) and ends when the declaration expires.
- Disaster area: Any location included in the presidential disaster declaration.
Significant Changes to Existing Law
This bill introduces a mandatory right to forbearance for eligible borrowers upon simple request and documentation, which goes beyond current voluntary programs. Existing federal rules (like those from Fannie Mae, Freddie Mac, or the Consumer Financial Protection Bureau) often allow forbearance in disasters but do not require servicers to grant it automatically or prohibit extra fees as strictly. It expands relief specifically for damage-related disasters, tying it directly to presidential declarations under the Stafford Act, and limits it to loans backed by Fannie Mae and Freddie Mac (not all federal loans, such as those from FHA or VA).
Potential Impacts
- On Citizens: Provides financial breathing room for homeowners and multifamily renters in disaster areas (e.g., after hurricanes, floods, or wildfires), reducing risks of foreclosure or eviction during rebuilding. This could help thousands in affected regions stabilize housing without credit damage from missed payments.
- On Government Agencies and Private Entities: Loan servicers must comply quickly, potentially increasing administrative workload. Fannie Mae and Freddie Mac, as backers of these loans, may face indirect costs from delayed payments but could see long-term benefits in preventing defaults. No direct impact on other federal agencies like FEMA, though it complements their disaster aid.
- On International Relations: None apparent; the bill is domestic-focused on U.S. housing and disaster policy.
Main Stakeholders Affected
- Borrowers and Residents: Primary beneficiaries, including individual homeowners with 1-4 unit properties and tenants in multifamily buildings (5+ units) covered by eligible loans in disaster zones.
- Loan Servicers: Companies managing payments, required to process requests and grant relief without discretion.
- Fannie Mae and Freddie Mac: Government-sponsored entities that back and securitize these loans, potentially absorbing some financial risks.
- Federal Government: Indirectly involved through oversight of disaster declarations and housing finance, but no new funding is authorized.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens borrower protections by mandating forbearance as a statutory right, enforceable through existing consumer finance laws. It clarifies "federally backed" to focus on Fannie/Freddie loans, avoiding overlap with other programs, but could lead to litigation if servicers challenge documentation requirements.
- Constitutional: Aligns with Congress's powers under the Commerce Clause to regulate housing finance and support disaster relief, building on the Stafford Act without raising federalism concerns (as it applies to private loans with federal backing).
- Political: Promotes equity in disaster recovery by targeting vulnerable populations, but limits scope to specific loan types, potentially sparking debates on expanding to all federal mortgages. As an introduced bill (not yet law), it reflects bipartisan interest in housing resilience, though sponsored by Democrats.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (13)
Rep. Sherman, Brad [D-CA-32], Rep. Sánchez, Linda T. [D-CA-38], Rep. Friedman, Laura [D-CA-30], Rep. Fields, Cleo [D-LA-6], Rep. Gomez, Jimmy [D-CA-34], Rep. Correa, J. Luis [D-CA-46], Rep. Pressley, Ayanna [D-MA-7], Rep. Tokuda, Jill N. [D-HI-2], Rep. Thanedar, Shri [D-MI-13], Rep. Huffman, Jared [D-CA-2], Rep. Neguse, Joe [D-CO-2], Rep. Garcia, Sylvia R. [D-TX-29], Rep. Lieu, Ted [D-CA-36]
Recent Actions
- 2025-04-17: Referred to the House Committee on Financial Services.
- 2025-04-17: Introduced in House
- 2025-04-17: Introduced in House
Bill Versions
- Mortgage Relief for Disaster Survivors Act — issued 2025-04-17 — PDF (5 pages)