Sponsors (2)
The bill provides immediate, no-fee mortgage forbearance and clearer federal coverage for many homeowners and some renters during declared disasters, but it leaves non‑federally backed borrowers unprotected and shifts operational, compliance, and cash‑flow risks onto servicers, investors, taxpayers, and potentially future borrowers.
Homeowners in declared disaster areas with covered (federally backed) mortgage loans can pause payments immediately for 180 days and extend once for up to 180 more days — up to 1 year of no-fee forbearance with no additional interest or penalties during the forbearance period, reducing immediate foreclosure risk and short-term financial strain.
Borrowers can request forbearance easily (by phone, online, or other servicer-eligible methods) and requests are accepted regardless of delinquency status, lowering administrative barriers to relief after a disaster.
Renters in multifamily buildings whose properties have federally backed loans may indirectly benefit from borrower relief tied to covered multifamily loans during declared disasters (e.g., reduced displacement risk if building owners obtain relief).
Homeowners and renters whose loans are not federally backed receive no new protections under the bill, leaving many borrowers and renters outside the relief framework during disasters.
Borrowers still owe missed payments after forbearance ends, which can create large lump-sum repayment demands or unaffordable modified repayment plans and may lead to delinquency or foreclosure down the road.
Mortgage servicers will carry unpaid balances for longer and face operational burdens; those costs may be passed on to other borrowers, investors, or taxpayers, and could strain smaller servicers.
Based on analysis of 3 sections of legislative text.
Gives borrowers with federally backed single‑family or multifamily mortgages in declared disaster areas the right to a 180‑day forbearance (plus one 180‑day extension) with no added fees or extra interest during forbearance.
Introduced July 31, 2025 by Adam Schiff · Last progress July 31, 2025
Gives borrowers with federally backed single‑family or multifamily mortgage loans in declared disaster areas a right to request and receive an initial 180‑day forbearance, with one optional 180‑day extension, for disasters declared on or after January 1, 2025. Servicers must accept requests by phone, in writing, online, or other methods, grant forbearance promptly on an affirmation of financial hardship, and cannot charge fees, penalties, or extra interest beyond amounts equivalent to timely contractual payments during the forbearance. Defines which loans and disaster declarations are covered by referencing existing federal programs and Stafford Act definitions, and permits borrowers to stop forbearance at any time; there is no new funding or specified enforcement mechanism in the text provided.