Mortgage Relief for Disaster Survivors Act
The bill specifies that a borrower can request a forbearance by submitting written documentation to their loan servicer, with the forbearance granted for an initial period of 180 days. The bill prohibits the accrual of additional fees or penalties during this forbearance period, relieving financial pressure on homeowners. The coverage is applicable to both single-family homes and multifamily residences, ensuring broad support for various housing types across the affected areas.
House Bill 2928, also known as the Mortgage Relief for Disaster Survivors Act, aims to provide financial relief to homeowners who have been impacted by major disasters or emergencies. The bill allows borrowers with federally backed mortgage loans to request a forbearance on their loan payments for properties that have been damaged or destroyed during a declared disaster period. This assistance is designed to ease the financial burden on affected homeowners and facilitate their recovery after a disaster.
The introduction of HB2928 may spark debate among legislators regarding the adequacy of federal disaster response measures. There may be discussions surrounding the potential financial implications for federal institutions that back such loans, given the extension of forbearance during catastrophic events. Furthermore, stakeholders, including housing advocates and financial institutions, may weigh in on the effectiveness of such measures and whether they sufficiently address the long-term recovery needs of disaster-affected communities.