Sponsors (4)
The bill protects covered federal employees and eligible contractors from foreclosure and credit harm during a funding lapse by mandating 90-day forbearances and reporting protections, but it creates compliance and financial burdens for servicers, raises retroactive legal complexity, and introduces criminal-liability risks for applicants.
Covered federal employees and eligible government contractors can request up to a 90-day mortgage forbearance during a federal funding lapse, preventing immediate foreclosure or missed-payment consequences.
Borrowers receiving these accommodations will not incur extra fees, penalties, or additional interest beyond scheduled amounts during the forbearance, lowering short-term housing costs.
Accounts placed under these accommodations must be reported as current to consumer reporting agencies, protecting affected borrowers' credit scores during and after the forbearance.
The retroactive effective date to September 30, 2025 could force servicers to undo prior reporting and billing and spawn disputes, creating substantial compliance complexity and legal risk for lenders and borrowers.
Mortgage servicers and lenders will bear operational and potential financial costs from mandatory forbearances and credit-reporting rules, which could increase administrative expenses and potentially be passed to consumers.
Making false statements subject to criminal penalty under 18 U.S.C. § 1014 could expose some covered individuals to federal prosecution if misunderstandings or errors occur when asserting hardship.
Based on analysis of 2 sections of legislative text.
Permits federal employees and certain contractors who lose pay during a lapse in appropriations to obtain a 90-day forbearance on federally backed mortgages and requires covered accounts be reported as current.
Official title: Provide certain Federal employees with the ability to request and receive a period of forbearance on certain mortgage loans during a period during which there is a lapse in appropriations, and for other purposes.
Introduced November 7, 2025 by Angela Deneece Alsobrooks · Last progress November 7, 2025
Allows federal employees and certain federal contractors who lose pay during a lapse in appropriations to request an immediate 90-day forbearance on federally backed mortgage loans during the shutdown and for up to 180 days after it ends. Servicers must grant the forbearance promptly without fees, penalties, or added interest beyond what would have accrued with on-time payments; credit reporting must show covered accounts as current (except charged-off accounts). The rules apply retroactively to September 30, 2025.