COVID-19 Mortgage Relief Act
This bill extends protections for renters and mortgage borrowers provided in response to the COVID-19 (i.e., coronavirus disease 2019) emergency, revises bankruptcy provisions, and expands COVID-19 aid programs to include mortgage servicers.
Mortgage forbearance may be extended to borrowers for up to 12 months. Currently, borrowers may receive 180 days of forbearance, with an extension of up to an additional 180 days. The bill also expands the forbearance provisions to apply to nonfederally backed mortgages.
The bill expands the current moratorium on evictions of renters from property receiving a forbearance to generally protect all such renters, not only renters in federally assisted housing or property that has a federally backed mortgage.
The current moratorium on mortgage foreclosures is extended from 60 days beginning on March 18, 2020, to 6 months after enactment of this bill. The bill also expands this moratorium to include nonfederally backed mortgages.
Additionally, the bill generally revises bankruptcy provisions. COVID-19 aid is excluded from property subject to bankruptcy proceedings and the homestead exemption available to individual debtors is increased, among other protections.
Existing COVID-19 economic aid programs are expanded to include mortgage servicers. The Department of the Treasury must allow mortgage servicers to participate in these programs to receive loans, loan guarantees, and other investments currently offered to eligible businesses, states, and municipalities.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6741 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 6741
To amend the CARES Act to provide forbearance and foreclosure
moratoriums for all mortgage loans, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 8, 2020
Mr. Clay (for himself, Ms. Waters, Mr. Lawson of Florida, Ms. Norton,
Mr. Green of Texas, Mr. Lynch, Mr. Garcia of Illinois, Mr. Smith of
Washington, Mrs. Hayes, Mr. Khanna, Mr. Brown of Maryland, Miss Rice of
New York, Mr. Hastings, Mr. Espaillat, Mr. Sherman, Mr. Carson of
Indiana, Mr. Sires, Ms. Schakowsky, Mr. Meeks, Mr. Higgins of New York,
Mr. Cohen, Ms. Roybal-Allard, Ms. Judy Chu of California, Mr. Soto, and
Ms. Gabbard) introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committee on
the Judiciary, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the CARES Act to provide forbearance and foreclosure
moratoriums for all mortgage loans, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. MORTGAGE RELIEF.
(a) Short Title.--This section may be cited as the ``COVID-19
Mortgage Relief Act''.
(b) Mortgage Relief.--
(1) Forbearance and foreclosure moratorium for covered
mortgage loans.--Section 4022 of the CARES Act (15 U.S.C. 9056)
is amended--
(A) by striking ``Federally backed mortgage loan''
each place such term appears and inserting ``covered
mortgage loan''; and
(B) in subsection (a)--
(i) by amending paragraph (2) to read as
follows:
``(2) Covered mortgage loan.--The term `covered mortgage
loan' means any credit transaction that is secured by a
mortgage, deed of trust, or other equivalent consensual
security interest on a 1- to 4-unit dwelling or on residential
real property that includes a 1- to 4-unit dwelling, except
that it shall not include a credit transaction under an open
end credit plan other than a reverse mortgage.''; and
(ii) by adding at the end the following:
``(3) Covered period.--With respect to a loan, the term
`covered period' means the period beginning on the date of
enactment of this Act and ending 12 months after such date of
enactment.''.
(2) Automatic forbearance for delinquent borrowers.--
Section 4022(c) of the CARES Act (15 U.S.C. 9056(c)), as
amended by paragraph (5) of this subsection, is further amended
by adding at the end the following:
``(9) Automatic forbearance for delinquent borrowers.--
``(A) In general.--Notwithstanding any other law
governing forbearance relief--
``(i) any borrower whose covered mortgage
loan became 60 days delinquent between March
13, 2020, and the date of enactment of this
paragraph, and who has not already received a
forbearance under subsection (b), shall
automatically be granted a 60-day forbearance
that begins on the date of enactment of this
paragraph, provided that a borrower shall not
be considered delinquent for purposes of this
paragraph while making timely payments or
otherwise performing under a trial modification
or other loss mitigation agreement; and
``(ii) any borrower whose covered mortgage
loan becomes 60 days delinquent between the
date of enactment of this paragraph and the end
of the covered period, and who has not already
received a forbearance under subsection (b),
shall automatically be granted a 60-day
forbearance that begins on the 60th day of
delinquency, provided that a borrower shall not
be considered delinquent for purposes of this
paragraph while making timely payments or
otherwise performing under a trial modification
or other loss mitigation agreement.
``(B) Initial extension.--An automatic forbearance
provided under subparagraph (A) shall be extended for
up to an additional 120 days upon the borrower's
request, oral or written, submitted to the borrower's
servicer affirming that the borrower is experiencing a
financial hardship that prevents the borrower from
making timely payments on the covered mortgage loan
due, directly or indirectly, to the COVID-19 emergency.
``(C) Subsequent extension.--A forbearance extended
under subparagraph (B) shall be extended for up to an
additional 180 days, up to a maximum of 360 days
(including the period of automatic forbearance), upon
the borrower's request, oral or written, submitted to
the borrower's servicer affirming that the borrower is
experiencing a financial hardship that prevents the
borrower from making timely payments on the covered
mortgage loan due, directly or indirectly, to the
COVID-19 emergency.
``(D) Right to elect to continue making payments.--
With respect to a forbearance provided under this
paragraph, the borrower of such loan may elect to
continue making regular payments on the loan. A
borrower who makes such election shall be offered a
loss mitigation option pursuant to subsection (d)
within 30 days of resuming regular payments to address
any payment deficiency during the forbearance.
``(E) Right to shorten forbearance.--At a
borrower's request, any period of forbearance provided
under this paragraph may be shortened. A borrower who
makes such a request shall be offered a loss mitigation
option pursuant to subsection (d) within 30 days of
resuming regular payments to address any payment
deficiency during the forbearance.
``(10) Automatic forbearance for certain reverse mortgage
loans.--
``(A) In general.--When any covered mortgage loan
which is also a federally insured reverse mortgage
loan, during the covered period, is due and payable due
to the death of the last borrower or end of a deferral
period or eligible to be called due and payable due to
a property charge default, or if the borrower defaults
on a property charge repayment plan, or if the borrower
defaults for failure to complete property repairs, or
if an obligation of the borrower under the Security
Instrument is not performed, the mortgagee
automatically shall be granted a six-month extension
of--
``(i) the mortgagee's deadline to request
due and payable status from the Department of
Housing and Urban Development;
``(ii) the mortgage's deadline to send
notification to the mortgagor or his or her
heirs that the loan is due and payable;
``(iii) the deadline to initiate
foreclosure;
``(iv) any reasonable diligence period
related to foreclosure or the Mortgagee
Optional Election;
``(v) if applicable, the deadline to obtain
the due and payable appraisal; and
``(vi) any claim submission deadline,
including the 6-month acquired property
marketing period.
``(B) Forbearance period.--The mortgagee shall not
request due and payable status from the Secretary of
Housing and Urban Development nor initiate foreclosure
during this six-month period described under
subparagraph (A), which shall be considered a
forbearance period.
``(C) Extension.--A forbearance provided under
subparagraph (B) and related deadline extension
authorized under subparagraph (A) shall be extended for
an additional 180 days upon--
``(i) the borrower's request, oral or
written, submitted to the borrower's servicer
affirming that the borrower is experiencing a
financial hardship that prevents the borrower
from making payments on property charges,
completing property repairs, or performing an
obligation of the borrower under the Security
Instrument due, directly or indirectly, to the
COVID-19 emergency;
``(ii) a non-borrowing spouse's request,
oral or written, submitted to the servicer
affirming that the non-borrowing spouse has
been unable to satisfy all criteria for the
Mortgagee Optional Election program due,
directly or indirectly, to the COVID-19
emergency, or to perform all actions necessary
to become an eligible non-borrowing spouse
following the death of all borrowers; or
``(iii) a successor-in-interest of the
borrower's request, oral or written, submitted
to the servicer affirming the heir's difficulty
satisfying the reverse mortgage loan due,
directly or indirectly, to the COVID-19
emergency.
``(D) Curtailment of debenture interest.--Where any
covered mortgage loan which is also a federally insured
reverse mortgage loan is in default during the covered
period and subject to a prior event which provides for
curtailment of debenture interest in connection with a
claim for insurance benefits, the curtailment of
debenture interest shall be suspended during any
forbearance period provided herein.''.
(3) Additional foreclosure and repossession protections.--
Section 4022(c) of the CARES Act (15 U.S.C. 9056(c)) is
amended--
(A) in paragraph (2), by striking ``may not
initiate any judicial or non-judicial foreclosure
process, move for a foreclosure judgment or order of
sale, or execute a foreclosure-related eviction or
foreclosure sale for not less than the 60-day period
beginning on March 18, 2020'' and inserting ``may not
initiate or proceed with any judicial or non-judicial
foreclosure process, schedule a foreclosure sale, move
for a foreclosure judgment or order of sale, execute a
foreclosure related eviction or foreclosure sale for
six months after the date of enactment of the COVID-19
HERO Act''; and
(B) by adding at the end the following:
``(3) Repossession moratorium.--In the case of personal
property, including any recreational or motor vehicle, used as
a dwelling, no person may use any judicial or non-judicial
procedure to repossess or otherwise take possession of such
property for six months after date of enactment of this
paragraph.''.
(4) Mortgage forbearance reforms.--Section 4022 of the
CARES Act (15 U.S.C. 9056) is amended--
(A) in subsection (b), by striking paragraphs (1),
(2), and (3) and inserting the following:
``(1) In general.--During the covered period, a borrower
with a covered mortgage loan who has not obtained automatic
forbearance pursuant to this section and who is experiencing a
financial hardship that prevents the borrower from making
timely payments on the covered mortgage loan due, directly or
indirectly, to the COVID-19 emergency may request forbearance
on the loan, regardless of delinquency status, by--
``(A) submitting a request, orally or in writing,
to the servicer of the loan; and
``(B) affirming that the borrower is experiencing a
financial hardship that prevents the borrower from
making timely payments on the covered mortgage loan
due, directly or indirectly, to the COVID-19 emergency.
``(2) Duration of forbearance.--
``(A) In general.--Upon a request by a borrower to
a servicer for forbearance under paragraph (1), such
forbearance shall be granted by the servicer for the
period requested by the borrower, up to an initial
length of 180 days, the length of which shall be
extended by the servicer, at the request of the
borrower for the period or periods requested, for a
total forbearance period of up to 12 months.
``(B) Minimum forbearance amounts.--For purposes of
granting a forbearance under this paragraph, a servicer
may grant an initial forbearance with a term of not
less than 90 days, provided that it is automatically
extended for an additional 90 days unless the servicer
confirms the borrower does not want to renew the
forbearance or that the borrower is no longer
experiencing a financial hardship that prevents the
borrower from making timely mortgage payments due,
directly or indirectly, to the COVID-19 emergency.
``(C) Right to shorten forbearance.--At a
borrower's request, any period of forbearance described
under this paragraph may be shortened. A borrower who
makes such a request shall be offered a loss mitigation
option pursuant to subsection (d) within 30 days of
resuming regular payments to address any payment
deficiency during the forbearance.
``(3) Accrual of interest or fees.--A servicer shall not
charge a borrower any fees, penalties, or interest (beyond the
amounts scheduled or calculated as if the borrower made all
contractual payments on time and in full under the terms of the
mortgage contract) in connection with a forbearance, provided
that a servicer may offer the borrower a modification option at
the end of a forbearance period granted hereunder that includes
the capitalization of past due principal and interest and
escrow payments as long as the borrower's principal and
interest payment under such modification remains at or below
the contractual principal and interest payments owed under the
terms of the mortgage contract before such forbearance period
except as the result of a change in the index of an adjustable
rate mortgage.
``(4) Communication with servicers.--Any communication
between a borrower and a servicer described under this section
may be made in writing or orally, at the borrower's choice.
``(5) Communication with borrowers with a disability.--Upon
request from a borrower, servicers shall communicate with
borrowers who have a disability in the borrower's preferred
method of communication. For purposes of this paragraph, the
term `disability' has the meaning given that term in the Fair
Housing Act, the Americans with Disabilities Act of 1990, or
the Rehabilitation Act of 1973.''; and
(B) in subsection (c), by amending paragraph (1) to
read as follows:
``(1) No documentation required.--A servicer of a covered
mortgage loan shall not require any documentation with respect
to a forbearance under this section other than the borrower's
affirmation (oral or written) to a financial hardship that
prevents the borrower from making timely payments on the
covered mortgage loan due, directly or indirectly, to the
COVID-19 emergency. An oral request for forbearance and oral
affirmation of hardship by the borrower shall be sufficient for
the borrower to obtain or extend a forbearance.''.
(5) Other servicer requirements during forbearance.--
Section 4022(c) of the CARES Act (15 U.S.C. 9056(c)), as
amended by paragraph (3) of this subsection, is further amended
by adding at the end the following:
``(4) Forbearance terms notice.--Within 30 days of a
servicer of a covered mortgage loan providing forbearance to a
borrower under subsection (b) or paragraph (9) or (10), or 10
days if the forbearance is for a term of less than 60 days, but
only where the forbearance was provided in response to a
borrower's request for forbearance or when an automatic
forbearance was initially provided under paragraph (9) or (10),
and not when an existing forbearance is automatically extended,
the servicer shall provide the borrower with a notice in
accordance with the terms in paragraph (5).
``(5) Contents of notice.--The written notice required
under paragraph (4) shall state in plain language--
``(A) the specific terms of the forbearance;
``(B) the beginning and ending dates of the
forbearance;
``(C) that the borrower is eligible for up to 12
months of forbearance;
``(D) that the borrower may request an extension of
the forbearance unless the borrower will have reached
the maximum period at the end of the forbearance;
``(E) that the borrower may request that the
initial or extended period be shortened at any time;
``(F) that the borrower should contact the servicer
before the end of the forbearance period;
``(G) a description of the loss mitigation options
that may be available to the borrower at the end of the
forbearance period based on the borrower's specific
loan;
``(H) information on how to find a housing
counseling agency approved by the Department of Housing
and Urban Development;
``(I) in the case of a forbearance provided
pursuant to paragraph (9) or (10), that the forbearance
was automatically provided and how to contact the
servicer to make arrangements for further assistance,
including any renewal; and
``(J) where applicable, that the forbearance is
subject to an automatic extension including the terms
of any such automatic extensions and when any further
extension would require a borrower request.
``(6) Treatment of escrow accounts.--During any forbearance
provided under this section, a servicer shall pay or advance
funds to make disbursements in a timely manner from any escrow
account established on the covered mortgage loan.
``(7) Notification for borrowers.--During the period that
begins 90 days after the date of the enactment of this
paragraph and ends at the end of the covered period, each
servicer of a covered mortgage loan shall be required to--
``(A) make available in a clear and conspicuous
manner on their web page accurate information, in
English and Spanish, for borrowers regarding the
availability of forbearance as provided under
subsection (b); and
``(B) notify every borrower whose payments on a
covered mortgage loan are delinquent in any oral
communication with or to the borrower that the borrower
may be eligible to request forbearance as provided
under subsection (b), except that such notice shall not
be required if the borrower already has requested
forbearance under subsection (b).
``(8) Certain treatment under respa.--As long as a
borrower's payment on a covered mortgage loan was not more than
30 days delinquent on March 13, 2020, a servicer may not deem
the borrower as delinquent while a forbearance granted under
subsection (b) is in effect for purposes of the application of
sections 6 and 10 of the Real Estate Settlement Procedures Act
and any applicable regulations.''.
(6) Post-forbearance loss mitigation.--
(A) Amendment to cares act.--Section 4022 of the
CARES Act (15 U.S.C. 9056) is amended by adding at the
end the following:
``(d) Post-Forbearance Loss Mitigation.--
``(1) Notice of availability of additional forbearance.--
With respect to any covered mortgage loan as to which
forbearance under this section has been granted and not
otherwise extended, including by automatic extension, a
servicer shall, no later than 30 days before the end of the
forbearance period, in writing, notify the borrower that
additional forbearance may be available and how to request such
forbearance, except that no such notice is required where the
borrower already has requested an extension of the forbearance
period, is subject to automatic extension pursuant to
subsection (b)(2)(B), or no additional forbearance is
available.
``(2) Loss mitigation offer before expiration of
forbearance.--No later than 30 days before the end of any
forbearance period that has not been extended or 30 days after
a request by a consumer to terminate the forbearance, which
time shall be before the servicer initiates or engages in any
foreclosure activity listed in subsection (c)(2), including
incurring or charging to a borrower any fees or corporate
advances related to a foreclosure, the servicer shall, in
writing--
``(A) offer the borrower a loss mitigation option,
without the charging of any fees or penalties other
than interest, such that the borrower's principal and
interest payment remains the same as it was prior to
the forbearance, subject to any adjustment of the index
pursuant to the terms of an adjustable rate mortgage,
and that either--
``(i) defers the payment of total
arrearages, including any escrow advances, to
the end of the existing term of the loan,
without the charging or collection of any
additional interest on the deferred amounts; or
``(ii) extends the term of the mortgage
loan, and capitalizes, defers, or forgives all
escrow advances and other arrearages,
provided, however, that the servicer may offer the
borrower a loss mitigation option that reduces the
principal and interest payment on the loan and
capitalizes, defers, or forgives all escrow advances or
arrearages if the servicer has information indicating
that the borrower cannot resume the pre-forbearance
mortgage payments; and
``(B) concurrent with the loss mitigation offer in
subparagraph (A), notify the borrower that the borrower
has the right to be evaluated for other loss mitigation
options if the borrower is not able to make the payment
under the option offered in subparagraph (A).
``(3) Evaluation for loss mitigation prior to foreclosure
initiation.--Before a servicer may initiate or engage in any
foreclosure activity listed in subsection (c)(2), including
incurring or charging to a borrower any fees or corporate
advances related to a foreclosure on the basis that the
borrower has failed to perform under the loss mitigation offer
in paragraph (2)(A) within the first 90 days after the option
is offered, including a failure to accept the loss mitigation
offer in paragraph (2)(A), the servicer shall--
``(A) unless the borrower has already submitted a
complete application that the servicer is reviewing--
``(i) notify the borrower in writing of the
documents and information, if any, needed by
the servicer to enable the servicer to consider
the borrower for all available loss mitigation
options; and
``(ii) exercise reasonable diligence to
obtain the documents and information needed to
complete the borrower's loss mitigation
application; and
``(B) upon receipt of a complete application or if,
despite the servicer's exercise of reasonable
diligence, the loss mitigation application remains
incomplete sixty days after the notice in paragraph
(2)(A) is sent, conduct an evaluation of the complete
or incomplete loss mitigation application without
reference to whether the borrower has previously
submitted a complete loss mitigation application and
offer the borrower all available loss mitigation
options for which the borrower qualifies under
applicable investor guidelines, including guidelines
regarding required documentation.
``(4) Effect on future requests for loss mitigation
review.--An application, offer, or evaluation for loss
mitigation under this section shall not be the basis for the
denial of a borrower's application as duplicative or for a
reduction in the borrower's appeal rights under Regulation X
(12 C.F.R. 1024) in regard to any loss mitigation application
submitted after the servicer has complied with the requirements
of paragraphs (2) and (3).
``(5) Safe harbor.--Any loss mitigation option authorized
by the Federal National Mortgage Association, the Federal Home
Loan Corporation, or the Federal Housing Administration that
either--
``(A) defers the payment of total arrearages,
including any escrow advances, to the end of the
existing term of the loan, without the charging or
collection of any additional interest on the deferred
amounts; or
``(B) extends the term of the mortgage loan, and
capitalizes, defers, or forgives all escrow advances
and other arrearages, without the charging of any fees
or penalties beyond interest on any amount capitalized
into the loan principal,
shall be deemed to comply with the requirements of paragraph
(1)(B).
``(6) Home retention options for certain reverse mortgage
loans.--
``(A) In general.--For a covered mortgage loan
which is also a federally insured reverse mortgage
loan, a servicer's conduct shall be deemed to comply
with this section provided that if the loan is eligible
to be called due and payable due to a property charge
default, the mortgagee shall, as a precondition to
sending a due and payable request to the Secretary or
initiating or continuing a foreclosure process--
``(i) make a good faith effort to
communicate with the borrower regarding
available home retention options to cure the
property charge default, including encouraging
the borrower to apply for home retention
options; and
``(ii) consider the borrower for all
available home retention options as allowed by
the Secretary.
``(B) Permissible repayment plans.--The Secretary
shall amend its allowable home retention options to
permit a repayment plan of up to 120 months in length,
and to permit a repayment plan without regard to prior
defaults on repayment plans.
``(C) Limitation on interest curtailment.--The
Secretary may not curtail interest paid to mortgagees
who engage in loss mitigation or home retention actions
through interest curtailment during such loss
mitigation or home retention review or during the
period when a loss mitigation or home retention plan is
in effect and ending 90 days after any such plan
terminates.''.
(B) Amendment to housing act of 1949.--Section 505
of the Housing Act of 1949 (42 U.S.C. 1475) is
amended--
(i) by striking the section heading and
inserting ``loss mitigation and foreclosure
procedures'';
(ii) in subsection (a), by striking the
section designation and all that follows
through ``During any'' and inserting the
following:
``Sec. 505. (a) Moratorium--(1) In determining a borrower's
eligibility for relief, the Secretary shall make all eligibility
decisions based on the borrower's household's income, expenses, and
circumstances.
``(2) During any'';
(iii) by redesignating subsection (b) as
subsection (c); and
(iv) by inserting after subsection (a) the
following new subsection:
``(b) Loan Modification.--(1) Notwithstanding any other provision
of this title, for any loan made under section 502 or 504, the
Secretary may modify the interest rate and extend the term of such loan
for up to 30 years from the date of such modification.
``(2) At the end of any moratorium period granted under this
section or under the COVID-19 HERO Act, the Secretary shall determine
whether the borrower can reasonably resume making principal and
interest payments after the Secretary modifies the borrower's loan
obligations in accordance with paragraph (1).''.
(7) Multifamily mortgage forbearance.--Section 4023 of the
CARES Act (15 U.S.C. 9057) is amended--
(A) by striking ``Federally backed multifamily
mortgage loan'' each place such term appears and
inserting ``multifamily mortgage loan'';
(B) in subsection (b), by striking ``during'' and
inserting ``due, directly or indirectly, to'';
(C) in subsection (c)(1)--
(i) in subparagraph (A), by adding ``and''
at the end; and
(ii) by striking subparagraphs (B) and (C)
and inserting the following:
``(B) provide the forbearance for up to the end of
the period described under section 4024(b).'';
(D) by redesignating subsection (f) as subsection
(g);
(E) by inserting after subsection (e) the
following:
``(f) Treatment After Forbearance.--With respect to a multifamily
mortgage loan provided a forbearance under this section, the servicer
of such loan--
``(1) shall provide the borrower with a 12-month period
beginning at the end of such forbearance to become current on
the payments under such loan;
``(2) may not charge any late fees, penalties, or other
charges with respect to payments on the loan that were due
during the forbearance period, if such payments are made before
the end of the 12-month period; and
``(3) may not report any adverse information to a credit
rating agency (as defined under section 603 of the Fair Credit
Reporting Act with respect to any payments on the loan that
were due during the forbearance period, if such payments are
made before the end of the 12-month period.)''; and
(F) in subsection (g), as so redesignated--
(i) in paragraph (2)--
(I) by striking ``that--'' and all
that follows through ``(A) is secured
by'' and inserting ``that is secured
by'';
(II) by striking ``; and'' and
inserting a period; and
(III) by striking subparagraph (B);
and
(ii) by amending paragraph (5) to read as
follows:
``(5) Covered period.--With respect to a loan, the term
`covered period' has the meaning given that term under section
4022(a)(3).''.
(8) Renter protections during forbearance period.--A
borrower that receives a forbearance pursuant to section 4022
or 4023 of the CARES Act (15 U.S.C. 9056 or 9057) may not, for
the duration of the forbearance--
(A) evict or initiate the eviction of a tenant
solely for nonpayment of rent or other fees or charges;
or
(B) charge any late fees, penalties, or other
charges to a tenant for late payment of rent.
(9) Extension of gse patch.--
(A) Non-applicability of existing sunset.--Section
1026.43(e)(4)(iii)(B) of title 12, Code of Federal
Regulations, shall have no force or effect.
(B) Extended sunset.--The special rules in section
1026.43(e)(4) of title 12, Code of Federal Regulations,
shall apply to covered transactions consummated prior
to June 1, 2022, or such later date as the Director of
the Bureau of Consumer Financial Protection may
determine, by rule.
(10) Servicer safe harbor from investor liability.--
(A) Safe harbor.--
(i) In general.--A servicer of covered
mortgage loans or multifamily mortgage loans
shall be deemed not to have violated any duty
or contractual obligation owed to investors or
other parties regarding such mortgage loans on
account of offering or implementing in good
faith forbearance during the covered period or
offering or implementing in good faith post-
forbearance loss mitigation (including after
the expiration of the covered period) in
accordance with the terms of sections 4022 and
4023 of the CARES Act to borrowers,
respectively, on covered or multifamily
mortgage loans that it services and shall not
be liable to any party who is owed such a duty
or obligation or subject to any injunction,
stay, or other equitable relief to such party
on account of such offer or implementation of
forbearance or post-forbearance loss
mitigation.
(ii) Other persons.--Any person, including
a trustee of a securitization vehicle or other
party involved in a securitization or other
investment vehicle, who in good faith
cooperates with a servicer of covered or
multifamily mortgage loans held by that
securitization or investment vehicle to comply
with the terms of section 4022 and 4023 of the
CARES Act, respectively, to borrowers on
covered or multifamily mortgage loans owned by
the securitization or other investment vehicle
shall not be liable to any party who is owed
such a duty or obligation or subject to any
injunction, stay, or other equitable relief to
such party on account of its cooperation with
an offer or implementation of forbearance
during the covered period or post-forbearance
loss mitigation, including after the expiration
of the covered period.
(B) Standard industry practice.--During the covered
period, notwithstanding any contractual restrictions,
it is deemed to be standard industry practice for a
servicer to offer forbearance or loss mitigation
options in accordance with the terms of sections 4022
and 4023 of the CARES Act to borrowers, respectively,
on all covered or multifamily mortgage loans it
services.
(C) Rule of construction.--Nothing in this
paragraph may be construed as affecting the liability
of a servicer or other person for actual fraud in the
servicing of a mortgage loan or for the violation of a
State or Federal law.
(D) Definitions.--In this paragraph:
(i) Covered mortgage loan.--The term
``covered mortgage loan'' has the meaning given
that term under section 4022(a) of the CARES
Act.
(ii) Covered period.--The term ``covered
period'' has the meaning given that term under
section 4023(g) of the CARES Act.
(iii) Multifamily mortgage loan.--The term
``multifamily mortgage loan'' has the meaning
given that term under section 4023(g) of the
CARES Act.
(iv) Servicer.--The term ``servicer''--
(I) has the meaning given the term
under section 6(i) of the Real Estate
Settlement Procedures Act of 1974 (12
U.S.C. 2605(i)); and
(II) means a master servicer and a
subservicer, as such terms are defined,
respectively, under section 1024.31 of
title 12, Code of Federal Regulations.
(v) Securitization vehicle.--The term
``securitization vehicle'' has the meaning
given that term under section 129A(f) of the
Truth in Lending Act (15 U.S.C. 1639a(f)).
(11) Amendments to national housing act.--Section 306(g)(1)
of the National Housing Act (12 U.S.C. 1721(a)) is amended--
(A) in the fifth sentence, by inserting after
``issued'' the following: ``, subject to any pledge or
grant of security interest of the Federal Reserve under
section 4003(a) of the CARES Act (Public Law 116-136;
134 Stat. 470; 15 U.S.C. 9042(a)) and to any such
mortgage or mortgages or any interest therein and the
proceeds thereon, which the Association may elect to
approve''; and
(B) in the sixth sentence--
(i) by striking ``or (C)'' and inserting
``(C)''; and
(ii) by inserting before the period the
following: ``, or (D) its approval and honoring
of any pledge or grant of security interest of
the Federal Reserve under section 4003(a) of
the CARES Act and to any such mortgage or
mortgages or any interest therein and proceeds
thereon as''.
(12) Bankruptcy protections.--
(A) Bankruptcy protections for federal coronavirus
relief payments.--Section 541(b) of title 11, United
States Code, is amended--
(i) in paragraph (9), in the matter
following subparagraph (B), by striking ``or'';
(ii) in paragraph (10)(C), by striking the
period at the end and inserting ``; or''; and
(iii) by inserting after paragraph (10) the
following:
``(11) payments made under Federal law relating to the
national emergency declared by the President under the National
Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the
coronavirus disease 2019 (COVID-19).''.
(B) Protection against discriminatory treatment of
homeowners in bankruptcy.--Section 525 of title 11,
United States Code, is amended by adding at the end the
following:
``(d) A person may not be denied any forbearance, assistance, or
loan modification relief made available to borrowers by a mortgage
creditor or servicer because the person is or has been a debtor, or has
received a discharge, in a case under this title.''.
(C) Increasing the homestead exemption.--Section
522 of title 11, United States Code, is amended--
(i) in subsection (d)(1), by striking
``$15,000'' and inserting ``$100,000''; and
(ii) by adding at the end the following:
``(r) Notwithstanding any other provision of applicable
nonbankruptcy law, a debtor in any State may exempt from property of
the estate the property described in subsection (d)(1) not to exceed
the value in subsection (d)(1) if the exemption for such property
permitted by applicable nonbankruptcy law is lower than that amount.''.
(D) Effect of missed mortgage payments on
discharge.--Section 1328 of title 11, United States
Code, is amended by adding at the end the following:
``(i) A debtor shall not be denied a discharge under this section
because, as of the date of discharge, the debtor did not make 6 or
fewer payments directly to the holder of a debt secured by real
property.
``(j) Notwithstanding subsections (a) and (b), upon the debtor's
request, the court shall grant a discharge of all debts provided for in
the plan that are dischargeable under subsection (a) if the debtor--
``(1) has made payments under a confirmed plan for at least
1 year; and
``(2) who is experiencing or has experienced a material
financial hardship due, directly or indirectly, to the
coronavirus disease 2019 (COVID-19) pandemic.''.
(E) Expanded eligibility for chapter 13.--Section
109(e) of title 11, United States Code, is amended--
(i) by striking ``$250,000'' each place the
term appears and inserting ``$850,000''; and
(ii) by striking ``$750,000'' each place
the term appears and inserting ``$2,600,000''.
(F) Extended cure period for homeowners harmed by
covid-19 pandemic.--
(i) In general.--Chapter 13 of title 11,
United States Code, is amended by adding at the
end thereof the following:
``Sec. 1331. Special provisions related to COVID-19 pandemic
``(a) Notwithstanding subsections (b)(2) and (d) of section 1322,
if the debtor is experiencing or has experienced a material financial
hardship due, directly or indirectly, to the coronavirus disease 2019
(COVID-19) pandemic, a plan may provide for the curing of any default
within a reasonable time, not to exceed 7 years after the time that the
first payment under the original confirmed plan was due, and
maintenance of payments while the case is pending on any unsecured
claim or secured claim on which the last payment is due after the
expiration of such time. Any such plan provision shall not affect the
applicable commitment period under section 1325(b).
``(b) For purposes of sections 1328(a) and 1328(b), any cure or
maintenance payments under subsection (a) that are made after the end
of the period during which the plan provides for payments (other than
payments under subsection (a)) shall not be treated as payments under
the plan.
``(c) Notwithstanding section 1329(c), a plan modified under
section 1329 at the debtor's request may provide for cure or
maintenance payments under subsection (a) over a period that is not
longer than 7 years after the time that the first payment under the
original confirmed plan was due.
``(d) Notwithstanding section 362(c)(2), during the period after
the debtor receives a discharge and the period during which the plan
provides for the cure of any default and maintenance of payments under
the plan, section 362(a) shall apply to the holder of a claim for which
a default is cured and payments are maintained under subsection (a) and
to any property securing such claim.
``(e) Notwithstanding section 1301(a)(2), the stay of section
1301(a) terminates upon the granting of a discharge under section 1328
with respect to all creditors other than the holder of a claim for
which a default is cured and payments are maintained under subsection
(a).''.
(ii) Table of contents.--The table of
sections of chapter 13, title 11, United States
Code, is amended by adding at the end thereof
the following:
``Sec. 1331. Special provisions related to COVID-19 pandemic.''.
(iii) Application.--The amendments made by
this paragraph shall apply only to any case
under title 11, United States Code, commenced
before 3 years after the date of enactment of
this Act and pending on or commenced after such
date of enactment, in which a plan under
chapter 13 of title 11, United States Code, was
not confirmed before March 27, 2020.
(13) Liquidity for mortgage servicers and residential
rental property owners.--
(A) In general.--Section 4003 of the CARES Act (15
U.S.C. 9042), is amended by adding at the end the
following:
``(i) Liquidity for Mortgage Servicers.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall ensure that servicers of covered mortgage loans (as
defined under section 4022) and multifamily mortgage loans (as
defined under section 4023) are provided the opportunity to
participate in the loans, loan guarantees, or other investments
made by the Secretary under this section. The Secretary shall
ensure that servicers are provided with access to such
opportunities under equitable terms and conditions regardless
of their size.
``(2) Mortgage servicer eligibility.--In order to receive
assistance under subsection (b)(4), a mortgage servicer shall--
``(A) demonstrate that the mortgage servicer has
established policies and procedures to use such funds
only to replace funds used for borrower assistance,
including to advance funds as a result of forbearance
or other loss mitigation provided to borrowers;
``(B) demonstrate that the mortgage servicer has
established policies and procedures to provide
forbearance, post-forbearance loss mitigation, and
other assistance to borrowers in compliance with the
terms of section 4022 or 4023, as applicable;
``(C) demonstrate that the mortgage servicer has
established policies and procedures to ensure that
forbearance and post-forbearance assistance is
available to all borrowers in a non-discriminatory
fashion and in compliance with the Fair Housing Act,
the Equal Credit Opportunity Act, and other applicable
fair housing and fair lending laws; and
``(D) comply with the limitations on compensation
set forth in section 4004.
``(3) Mortgage servicer requirements.--A mortgage servicer
receiving assistance under subsection (b)(4) may not, while the
servicer is under any obligation to repay funds provided or
guaranteed under this section--
``(A) pay dividends with respect to the common
stock of the mortgage servicer or purchase an equity
security of the mortgage servicer or any parent company
of the mortgage servicer if the security is listed on a
national securities exchange, except to the extent
required under a contractual obligation that is in
effect on the date of enactment of this subsection; or
``(B) prepay any debt obligation.''.
(B) Credit facility for residential rental property
owners.--
(i) In general.--The Board of Governors of
the Federal Reserve System shall--
(I) establish a facility, using
amounts made available under section
4003(b)(4) of the CARES Act (15 U.S.C.
9042(b)(4)), to make long-term, low-
cost loans to residential rental
property owners as to temporarily
compensate such owners for documented
financial losses caused by reductions
in rent payments; and
(II) defer such owners' required
payments on such loans until after six
months after the date of enactment of
this Act.
(ii) Requirements.--A borrower that
receives a loan under this subsection may not,
for the duration of the loan--
(I) evict or initiate the eviction
of a tenant solely for nonpayment of
rent or other fees or charges;
(II) charge any late fees,
penalties, or other charges to a tenant
for late payment of rent; and
(III) with respect to a person or
entity described under clause (iv),
discriminate on the basis of source of
income.
(iii) Report on residential rental property
owners.--The Board of Governors shall issue a
report to the Congress containing the
following, with respect to each property owner
receiving a loan under this subsection:
(I) The number of borrowers that
received assistance under this
subsection.
(II) The average total loan amount
that each borrower received.
(III) The total number of rental
units that each borrower owned.
(IV) The average rent charged by
each borrower.
(iv) Report on large residential rental
property owners.--The Board of Governors shall
issue a report to Congress that identifies any
person or entity that in aggregate owns or
holds a controlling interest in any entity
that, in aggregate, owns--
(I) more than 100 rental units that
are located within a single
Metropolitan Statistical Area;
(II) more than 1,000 rental units
nationwide; or
(III) rental units in three or more
States.
(C) Mortgage performance data.--Section 4003(c) of
the CARES Act (Public Law 116-136) is amended by adding
at the end the following:
``(4) Mortgage performance data.--
``(A) Monthly report.--
``(i) In general.--A servicer of a
residential mortgage loan receiving a loan,
loan guarantee, or any other investment under
this section shall, beginning in the first
month in which the loan, loan guarantee, or
investment was received, collect and provide
loan-level data to the Bureau of Consumer
Financial Protection on a monthly basis with
respect all residential mortgage loans serviced
by the servicer.
``(ii) Contents.--Each monthly report
required under this subparagraph shall contain
identifying information and loan performance
data for the most recent month as well as
cumulative data since the servicer began
reporting under this paragraph.
``(iii) Time period for reports.--Reports
under this paragraph shall be provided by a
servicer every month in which a loan, loan
guarantee, or any other investment under this
section has been received and for 2 years
following such receipt.
``(B) Identifying information.--Each monthly report
required under subparagraph (A) shall include the
following loan-level identifying information:
``(i) Demographic data, for each borrower,
including race, ethnicity, sex, and age.
``(ii) The location of the property,
including by State, Metropolitan Statistical
Area, postal code, census tract, and
Metropolitan District, if applicable.
``(iii) Loan origination information,
including original unpaid principal balance,
original interest rate, first payment date,
original loan term, and lien status (first or
subordinate).
``(iv) Loan type and type of loan
purchaser, as described under section 304 of
the Home Mortgage Disclosure Act of 1975 (12
U.S.C. 2803) and the rules issued to carry out
such section.
``(C) Loan performance data.--Each monthly report
required under subparagraph (A) shall include the
following loan-level loan performance data:
``(i) Current loan information, including
current actual unpaid principal balance,
current interest rate, current loan delinquency
status (based on the number of days the
borrower is delinquent in payments based on the
due date of the last paid loan payment), loan
performance status (including current,
forbearance, repayment plan, referred to
foreclosure, trial modification, permanent
modification, or foreclosed), and the date of
the event leading to such status.
``(ii) Loss mitigation information,
including--
``(I) whether the loan is currently
being evaluated for loss mitigation,
and if so the date upon which the
current loss mitigation process was
initiated and the date of complete
application, if any
``(II) the disposition of any
previous loss mitigation evaluation
reported pursuant to subclause (I) and
the date of disposition, including--
``(aa) denied;
``(bb) temporary or short-
term agreement, such as a
repayment agreement or
forbearance, and the length of
such agreement (in months);
``(cc) trial loan
modification;
``(dd) permanent loan
modification; or
``(ee) other type of loss
mitigation; and
``(III) for each permanent
modification--
``(aa) whether the
permanent modification included
one or more of--
``(AA) additions of
delinquent payments and
fees to loan balances;
``(BB) interest
rate reductions and
freezes;
``(CC) term
extensions;
``(DD) reductions
of principal; or
``(EE) deferrals of
principal; and
``(bb) whether the total
monthly principal and interest
payment, as a result of the
permanent modification--
``(AA) increased;
``(BB) remained the
same;
``(CC) decreased
less than 10 percent;
``(DD) decreased
between 10 and 20
percent; or
``(EE) decreased 20
percent or more.
``(D) Forbearance data.--Each monthly report
required under subparagraph (A) shall include, with
respect to each loan for which a forbearance has been
reported under subparagraph (C)(i), forbearance-
specific data, including--
``(i) the total months of total forbearance
granted to date; and
``(ii) the number of renewals of
forbearance to date.
``(E) Public availability of aggregate data.--
``(i) In general.--Using data submitted by
servicers under this paragraph, the Director of
the Bureau of Consumer Financial Protection
shall make available aggregate data by servicer
for each State, Metropolitan Statistical Area,
and Metropolitan Division, as defined by the
Office of Management and Budget. Such aggregate
data shall be provided monthly by the Director
to Congress and posted on the Bureau of
Consumer Financial Protection's website.
``(ii) Exception for certain personally
identifiable data.--If aggregate data described
under clause (i) is nonetheless reasonably
personally identifiable, the Director may
report the aggregate data by servicer on the
next larger geographic unit (such that, for
example, data would not be reported by
Municipal Division but only by Metropolitan
Statistical Area and State).
``(F) Implementation.--The Director of the Bureau
of Consumer Financial Protection shall, within 60 days
of the date of enactment of this paragraph, and in
consultation with the Director of the Federal Housing
Finance Agency and the Comptroller of the Currency,
prescribe the format and method of submission of the
data required under this paragraph. The Director of the
Bureau may prescribe rules for the collection of the
data in order to ensure accuracy, transparency, and
complete data collection, including the collection and
reporting of additional data elements, but may not
require reporting of fewer data elements than
prescribed by this paragraph nor less frequent
reporting than required by this paragraph.
``(G) Definitions.--In this paragraph:
``(i) COVID-19 emergency.--The term `COVID-
19 emergency' means the national emergency
concerning the novel coronavirus disease
(COVID-19) outbreak declared by the President
on March 13, 2020, under the National
Emergencies Act (50 U.S.C. 1601 et seq.).
``(ii) Residential mortgage loan.--The term
`residential mortgage loan' has the meaning
given that term under section 103(dd) of the
Truth in Lending Act (15 U.S.C. 1602(dd)).
``(iii) Servicer.--The term `servicer' has
the meaning given in section 6(i) of the Real
Estate Settlement Procedures Act of 1974 (12
U.S.C. 2605(i)).''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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