119-s2569

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2569 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2569

To provide forbearance assistance during a major disaster or emergency, 
 and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 31, 2025

Mr. Schiff (for himself and Mr. Bennet) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
 and Urban Affairs

_______________________________________________________________________

 A BILL

To provide forbearance assistance during a major disaster or emergency, 
 and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Mortgage Relief for Disaster 
Survivors Act''.

SEC. 2. DEFINITIONS.

 In this Act:

    (1) Covered mortgage loan.--The ``covered mortgage loan'' 
 means--
        (A) a Federally backed mortgage loan; or
        (B) a Federally backed multifamily mortgage loan.

    (2) Covered period.--The term ``covered period'' means the 
 period beginning on the date of the declaration of a disaster 
 and ending on the date on which the declaration ends.

    (3) Disaster.--The term ``disaster'' means--
        (A) any major disaster or emergency declared by the 
 President under 

section 401 or 501, respectively, of 
 the Robert T. Stafford Disaster Relief and Emergency 
 Assistance Act (42 U.S.C. 5170, 5191); and
        (B) any disaster or emergency declared by the 
 Governor of a State or the Chief Executive of an Indian 
 tribal government.

    (4) Disaster area.--The term ``disaster area'' means, with 
 respect to a disaster, any area that is subject to the 
 declaration of the disaster.

    (5) Federally backed mortgage loan.--The term ``Federally 
 backed mortgage loan'' includes any loan that is secured by a 
 first or subordinate lien on residential real property 
 (including individual units of condominiums and cooperatives) 
 designed principally for the occupancy of from 1- to 4- 
 families that is--
        (A) insured by the Federal Housing Administration 
 under title II of the National Housing Act (12 U.S.C. 
 1707 et seq.);
        (B) insured under 

section 255 of the National 
 Housing Act (12 U.S.C. 1715z-20);
            (C) guaranteed under 

section 184 or 184A of the 
 Housing and Community Development Act of 1992 (12 
 U.S.C. 1715z-13a, 1715z-13b);
            (D) guaranteed or insured by the Department of 
 Veterans Affairs;
        (E) guaranteed or insured by the Department of 
 Agriculture;
        (F) made by the Department of Agriculture; or
        (G) purchased or securitized by the Federal Home 
 Loan Mortgage Corporation or the Federal National 
 Mortgage Association.

    (6) Federally backed multifamily mortgage loan.--The term 
 ``Federally backed multifamily mortgage loan'' includes any 
 loan (other than temporary financing, such as a construction 
 loan) that--
        (A) is secured by a first or subordinate lien on 
 residential multifamily real property designed 
 principally for the occupancy of 5 or more families, 
 including any such secured loan, the proceeds of which 
 are used to prepay or pay off an existing loan secured 
 by the same property; and
        (B) is--
            (i) insured under 

section 255 of the 
 National Housing Act (12 U.S.C. 1715z-20);
            (ii) guaranteed under 

section 184 or 184A 
 of the Housing and Community Development Act of 
 1992 (12 U.S.C. 1715z-13a, 1715z-13b);
            (iii) guaranteed or insured by the 
 Department of Veterans Affairs;
            (iv) guaranteed or insured by the 
 Department of Agriculture;
            (v) made by the Department of Agriculture; 
 or
            (vi) purchased or securitized by the 
 Federal Home Loan Mortgage Corporation or the 
 Federal National Mortgage Association.

    (7) Governor; indian tribal government; state.--The terms 
 ``Governor'', ``Indian tribal government'', and ``State'' have 
 the meanings given those terms in 

section 102 of the Robert T. 
 Stafford Disaster Relief and Emergency Assistance Act (42 
 U.S.C. 5122).

SEC. 3. FORBEARANCE OF LOAN PAYMENTS FOR BORROWERS OF PROPERTIES WITH 
 FEDERALLY BACKED LOANS IN DISASTER AREAS.

    (a) In General.--With respect to any disaster, a borrower with a 
covered mortgage loan that is secured by a property located within the 
disaster area may request a forbearance on the covered mortgage loan 
during the covered period.

    (b) Request for Forbearance.--A borrower described in subsection

    (a) may request a forbearance on a covered mortgage loan, regardless of 
the delinquency status of the covered mortgage loan, by--

    (1) submitting a request to the borrower's servicer in 
 writing, over the phone, online, or through any other 
 notification method determined to be eligible by the servicer; 
 and

    (2) affirming that the borrower is experiencing a financial 
 hardship.
            (c) Grant of Forbearance.--

    (1) In general.--Upon receiving a request for a forbearance 
 from a borrower described in subsection

    (a) , the borrower's 
 servicer shall promptly and without unreasonable delay grant a 
 forbearance--
        (A) for a duration of 180 days; and
        (B) regardless of the delinquency status of the 
 covered mortgage loan.

    (2) Extension of forbearance.--At any time during the 
 forbearance, a borrower may request an extension, of not more 
 than 180 days, of the duration described in paragraph

    (1)
        (A) .
            (d) Right To Discontinue.--A borrower described in subsection

    (a) may request to discontinue a forbearance granted under subsection
            (c) at any time.

    (e) Accrual.--During any forbearance granted under subsection
            (c) , 
no fees, penalties, or interest (beyond the amounts scheduled or 
calculated as if the borrower made all contractual payments on time and 
in full under the terms of the mortgage contract) shall accrue on the 
borrower's account.

    (f) Application.--This section shall apply to with respect to any 
disaster declared on or after January 1, 2025.
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