Sponsors (4)
The bill gives temporary mortgage relief and credit‑report protections to federal employees and contractors during a lapse/shutdown but shifts costs and compliance burdens to taxpayers and lenders and leaves legal risk for false claims and some charged‑off borrowers without protection.
Covered federal employees and government contractors can pause mortgage payments for 90 days after a lapse/ shutdown without penalty, reducing immediate financial strain.
Borrowers with affected mortgages cannot be charged extra fees, penalties, or additional interest beyond what would have accrued if payments were timely, protecting borrowers from added costs during forbearance.
Borrowers whose accounts are placed in forbearance will have those accounts reported as current to consumer reporting agencies (except charged-off accounts), helping avoid credit‑score damage.
Taxpayers and mortgage investors may bear costs from deferred payments and the credit protections, including retroactive adjustments back to September 30, 2025.
Servicers and lenders will face administrative and compliance costs to implement the prompt forbearance, reporting changes, and retroactive adjustments.
Applicants who knowingly misrepresent hardship could face federal criminal penalties for false statements, creating legal risk for some borrowers applying for relief.
Based on analysis of 2 sections of legislative text.
Introduced November 7, 2025 by Angela Deneece Alsobrooks · Last progress November 7, 2025
Gives people affected by a federal government shutdown the right to request a 90-day forbearance on Federally backed mortgage loans during a defined covered period. Mortgage servicers must promptly grant the forbearance regardless of delinquency status, cannot charge extra fees or require a lump-sum repayment at the end, and must limit added interest to what would have accrued if payments had been made on time. Requires federal agencies to notify covered individuals within 10 days after a lapse in appropriations begins, creates a criminal penalty for knowingly making false statements tied to forbearance requests, and changes credit reporting rules so account accommodations are reported as current (with an exception for charged-off accounts). The provisions are retroactive to take effect as if enacted on September 30, 2025.