Disaster survivors get mortgage payment pause—servicers absorb the cost
H.R. 2928 — Mortgage Relief for Disaster Survivors Act · Filed by Judy Chu (D-CA) · 13 cosponsors · Introduced Apr 17, 2025 · Referred to committee
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What it does
This bill allows homeowners and multifamily property owners with federally backed mortgages in disaster areas to pause loan payments for up to 180 days (extendable another 180 days) after a presidential disaster declaration, without accruing additional fees, penalties, or interest. Borrowers can request forbearance by submitting written proof of property damage, and servicers must grant it regardless of whether the loan is already delinquent.
Why we flagged it
The bill is a targeted consumer protection measure that provides temporary payment relief to disaster-affected homeowners. It functions as emergency assistance tied to presidential disaster declarations, not a permanent subsidy or industry carve-out.
What the text implies
- Servicers may face cash-flow pressure if many borrowers in a single disaster area exercise forbearance simultaneously, potentially affecting their liquidity and capital ratios.
- The bill does not address what happens to accrued principal or whether forbearance periods extend loan maturity; borrowers may face balloon payments or extended loan terms post-forbearance.
The full analysis lists 4 implications of this text.
Who stands to gain
disaster-affected homeowners and property owners; mortgage servicers (reduced default/foreclosure costs); Fannie Mae and Freddie Mac (reduced credit losses)