Bill > S2569

This bill provides mortgage relief for homeowners and property owners in areas affected by major disasters or emergencies. Specifically, the bill allows borrowers with federally backed mortgage loans (including loans from the FHA, VA, Department of Agriculture, and loans purchased by Fannie Mae or Freddie Mac) to request a forbearance if their property is located in a declared disaster area. Borrowers can request a 180-day forbearance by simply contacting their loan servicer and affirming they are experiencing financial hardship, regardless of their current loan delinquency status. During the forbearance period, no additional fees, penalties, or interest will accrue beyond the standard loan terms, and borrowers can request a one-time extension of up to an additional 180 days or choose to discontinue the forbearance at any time. The bill defines a "disaster" broadly, including presidentially declared major disasters or emergencies, as well as those declared by state governors or tribal government leaders. These provisions will apply to any disasters declared on or after January 1, 2025, providing a safety net for property owners experiencing financial challenges due to natural disasters or other emergency situations.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/2569/all-info