HR2928-119

What This Bill Does

The Mortgage Relief for Disaster Survivors Act creates a statutory forbearance right for borrowers whose property is in a presidentially declared disaster area and is damaged or destroyed. Covered borrowers with Fannie Mae or Freddie Mac-backed single-family or multifamily mortgage loans may request forbearance during the disaster declaration period by submitting a written request and documentation of verifiable damage. The servicer must grant 180 days of forbearance regardless of delinquency status, must allow an extension of up to another 180 days, and cannot charge extra fees, penalties, or interest beyond what would have accrued if the borrower paid on time.

Who Benefits and How

Disaster-damaged homeowners with federally backed mortgages benefit because they receive a guaranteed payment pause after property damage or destruction. Multifamily property borrowers in disaster areas benefit because Fannie Mae and Freddie Mac-backed multifamily loans are included. Disaster survivors who are already delinquent benefit because delinquency status does not bar forbearance. Housing stability advocates benefit from a clear post-disaster mortgage relief rule tied to Stafford Act declarations.

Who Bears the Burden and How

Mortgage loan servicers must grant qualifying forbearance requests and process extensions without adding extra fees or penalties. Fannie Mae and Freddie Mac must absorb operational effects through their backed loan portfolios and servicer requirements. Investors in affected mortgage-backed securities may face payment-timing disruptions during disaster forbearance periods. Borrowers must document verifiable property damage and manage repayment after forbearance ends.

Key Provisions

• Requires 180 days of forbearance for qualifying disaster-damaged covered mortgage loans.
• Provides an extension option of up to 180 additional days during the forbearance.
• Prohibits extra fees, penalties, or interest beyond scheduled contractual amounts during forbearance.
• Defines covered loans to include Fannie Mae and Freddie Mac-backed single-family and multifamily mortgages.