H.R. 554 — Introduced in House

I 113th CONGRESS 1st Session H. R. 554 IN THE HOUSE OF REPRESENTATIVES February 6, 2013 Mr. Jeffries introduced the following bill; which was referred to the Committee on Financial Services A BILL To provide relief to homeowners affected by Superstorm Sandy who have mortgages insured by the FHA, or owned or guaranteed by Fannie Mae or Freddie Mac, and for other purposes. 1. Short title This Act may be cited as the Superstorm Sandy Mortgage Relief Act of 2013. 2. Requirement to offer forbearance to affected homeowners (a) Requirement The Secretary of Housing and Urban Development and the Director of the Federal Housing Finance Agency shall each carry out a program under this section to notify mortgagors under covered mortgages of the availability of forbearance under the program and to offer and provide such relief upon a request by an eligible homeowner. (b) Covered mortgage For purposes of this section, the term covered mortgage means a mortgage— (1) that is secured by a one- to four-family dwelling that— (A) is the principal residence of the mortgagor; and (B) is located within an area for which a major disaster was declared pursuant to section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) as a result of Hurricane Sandy; and (2) that is— (A) insured under title II of the National Housing Act (12 U.S.C. 1707 et seq.); or (B) owned or guaranteed by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. (c) Eligible homeowner For purposes of this section, the term eligible homeowner means a mortgagor under a covered mortgage whose— (1) household experienced a disruption in income as a result of Hurricane Sandy, as determined in accordance with guidelines issued pursuant to subsection (k); or (2) residence that secures the mortgage was damaged as a result of Hurricane Sandy, as determined in accordance with guidelines issued pursuant to subsection (k). (d) Notification Under the program under this section, the applicable agency heads shall require each mortgagee of a covered mortgage to notify the mortgagor under the mortgage in writing, not later than the expiration of the 60-day period beginning on the date of the enactment of this Act and in such form as the applicable agency heads shall require pursuant to guidelines issued under subsection (k)— (1) that the mortgage is a covered mortgage that may be eligible for forbearance relief under the program under this section; (2) of the requirements for eligible homeowners to qualify for such relief; (3) of the terms of such relief; and (4) how to request such relief. (e) Request for relief The applicable agency heads shall, by guidelines issued under subsection (k), provide for mortgagors under covered mortgages to submit requests, during the 6-month period beginning on the date of the enactment of this Act, to the mortgagees of such mortgages for forbearance relief under the program under this section. (f) Determination Upon receipt of a request made by a mortgagor under a covered mortgage for forbearance relief under the program under this section that is submitted during the period referred to in subsection (e), the mortgagee shall promptly determine whether the mortgagor is an eligible homeowner and immediately notify the mortgagor in writing of such determination. (g) Requirement To offer forbearance If, pursuant to a request for relief submitted pursuant to subsection (e) with respect to a covered mortgage, the mortgagee for the mortgage determines that the mortgagor under the mortgage is an eligible homeowner, the mortgagee shall, together with the notification required under subsection (f) submit to the eligible homeowner a written offer for forbearance that meets the requirements of subsection (h). (h) Terms of forbearance (1) In general An offer for forbearance with respect to a covered mortgage meets the terms of this subsection only if— (A) the forbearance provides for the suspension of payments due under the mortgage for a period having a duration that is not shorter than 4 months nor longer than 12 months; and (B) the offer provides for forbearance and terms, requirements, and procedures for such forbearance that otherwise comply with guidelines issued by the Secretary and the Director pursuant to paragraph (2) of this subsection. (2) Establishment of terms The applicable agency heads shall, by guidelines issued pursuant to subsection (k), provide for the terms, requirements, and procedures for forbearance offered under the program under this section. Such guidelines shall provide that— (A) such forbearance shall be in manner provided under, and subject to the terms of, the provisions of Mortgagee Letter 2002–17 of the Secretary (regarding Special Forbearance: Program Changes and Updates) relating to Type I Special Forbearance, except that— (i) an offer of forbearance under the program under this section shall only provide relief described in paragraph (1)(A) of this subsection; (ii) any requirement under such Mortgagee Letter relating to delinquency of the mortgage or payments due and unpaid shall not apply to the program under this section; and (iii) the terms of such Mortgagee Letter shall apply with respect to mortgages described in subsection (b)(2)(B) and to the Director in the same manner and to the same extent that such Mortgagee Letter applies to mortgages described in subsection (b)(2)(A) and the Secretary; and (B) the period referred to in paragraph (1)(A) of this subsection may cover periods for which payments due under the mortgage were not paid that occurred before the request for relief under the program was submitted, including periods occurring before the date of the enactment of this Act. (i) Other forbearance This section may not be construed to prevent an eligible homeowner and the mortgagee for the covered mortgage of such eligible homeowner from agreeing to any other terms of forbearance, regardless of whether such eligible homeowner made a request under subsection (e) or received an offer of forbearance pursuant to subsection (g). (j) Other definitions For purposes of this section, the following definitions shall apply: (1) Applicable agency head The term applicable agency head means— (A) the Secretary, with respect to a covered mortgage described in subsection (b)(2)(A); and (B) the Director, with respect to a covered mortgage described in subsection (b)(2)(B). (2) Director The term Director means the Director of the Federal Housing Finance Agency. (3) Mortgagee The term mortgagee means, with respect to a covered mortgage, the original lender under the mortgage and any affiliates, agents, subsidiaries, successors, or assignees of such lender, any subsequent purchaser, trustee, or transferee of the mortgage or credit instrument issued by such lender. (4) Secretary The term Secretary means the Secretary of Housing and Urban Development. (k) Guidelines Not later than the expiration of the 30-day period beginning on the date of the enactment of this Act, the Secretary and the Director shall jointly issue guidelines to carry out the program under this section.