NLIHC-Endorsed Bill Introduced Granting Mortgage Forbearance for Disaster-Impacted Families

By Noah Patton, NLIHC Director of Disaster Recovery 

Senators Adam Schiff (D-CA) and Michael Bennet (D-CO) introduced the “Mortgage Relief for Disaster Survivors Act” on July 31. This bill, endorsed by NLIHC and members of the NLIHC-led Disaster Housing Recovery Coalition (DHRC) would grant homeowners with federally backed mortgages 180 days of mortgage forbearance on request with the option of a 180-day extension without interest or penalties if they live in areas that have received state and federal disaster declarations. The bill is the Senate version of a bill introduced in the House of Representatives by Reps. Judy Chu (D-CA) and Brad Sherman (D-CA).  

The DHRC is an NLIHC-led group of over 900 local, state, and national organizations, including many directly responding to disasters in their communities, who work to ensure that all disaster survivors receive the assistance they need to fully recover. DHRC members worked with multiple congressional offices to help draft the bill’s text.  

Mortgage forbearance—which lets homeowners stop paying mortgage payments for a certain period—is often available to homeowners in federally declared disaster areas, but there is no requirement that mortgage servicers provide it. The result is a patchwork of assistance that varies from disaster to disaster. By creating a consistent requirement and expanding eligibility to homeowners in any state or federally declared disaster area, the “Mortgage Relief for Disaster Survivors Act” would allow low-income homeowners to better weather the economic impacts of disasters while remaining in their homes and communities.  

“Earlier this year, we watched as families in Los Angeles were devastated by wildfires, and to date, many homeowners are still struggling to rebuild from this disaster,” said Senator Schiff (D-CA) in a press release announcing the bill’s introduction. “I am proud to introduce this bill so that those who have been affected by natural disasters receive the assistance they need when they need it the most.”  

“Coloradans know all too well how difficult it is to pick up the pieces and move forward after catastrophic wildfires,” said Senator Bennet (D-CO) in the same press release. “When mounting financial and emotional costs of recovery weigh on families, they should be able to take time to put their lives back together and rebuild their homes.” 

“Disasters don’t just destroy homes—they deepen the financial hardship for the lowest-income families who were already struggling to make ends meet,” said Renee Willis, president and CEO of NLIHC in the release. “By enacting the ‘Mortgage Relief for Disaster Survivors Act,’ Congress can ensure that impacted low-income homeowners can pause their payments while they recover, preventing displacement and ensuring families can stay in their communities after disasters strike.” 

You can read the press release announcing the bill’s introduction here.  

You can read the text of the bill here.  

You can find out more about NLIHC’s Disaster Housing Recovery Coalition here.