Bill
S 5528
Bill S 5528 allows state-regulated banks to offer disaster forbearance agreements, helping homeowners pause mortgage payments during recovery from disasters.
Bill Number: S 5528
Title: Authorizes certain state regulated institutions to offer disaster forbearance agreements to qualified mortgagors
Status: Referred to Banks
Introduced: February 24, 2025
Classification: Bill
Bill S 5528 aims to provide financial relief to mortgagors affected by disasters by allowing state-regulated financial institutions to offer disaster forbearance agreements. The intent is to support homeowners who may struggle to meet their mortgage obligations due to unforeseen circumstances such as natural disasters, thereby preventing foreclosure and promoting housing stability.
Disaster Forbearance Agreements: The bill authorizes specific state-regulated institutions, such as banks and credit unions, to enter into forbearance agreements with qualified mortgagors. These agreements would allow borrowers to temporarily pause or reduce their mortgage payments during a disaster recovery period.
Eligibility Criteria: The bill outlines criteria for mortgagors to qualify for these agreements, which may include:
Duration of Forbearance: The bill specifies the maximum duration for which forbearance can be granted, ensuring that it is a temporary relief measure.
Notification Requirements: Institutions must inform eligible mortgagors about the availability of forbearance agreements and the process to apply for them.
Qualified Mortgagors: Homeowners who have been impacted by disasters and are struggling to meet their mortgage obligations will benefit directly from the provisions of this bill.
State-Regulated Financial Institutions: Banks and credit unions that are authorized to offer these forbearance agreements will need to implement new procedures to comply with the bill's requirements.
Legislative Status: As of February 24, 2025, the bill has been referred to the Banks committee for further consideration. This is an important step in the legislative process, as it will be reviewed and potentially amended before being voted on by the full legislature.
Related Bills: This bill is related to prior-session bills S 8446, S 1617, and S 5838, which may address similar issues or provide context for the current legislative efforts regarding mortgage relief in disaster situations.
Bill S 5528 represents a proactive approach to assist homeowners facing financial difficulties due to disasters. By enabling state-regulated institutions to offer forbearance agreements, the bill seeks to mitigate the economic impact of such events on individuals and families, promoting recovery and stability in affected communities.
Compiled from official sources — confirm details with the bill’s official record.
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