Summary of HR 2928: Mortgage Relief for Disaster Survivors Act

Bill Number: HR 2928

Introduced: April 17, 2025

Status: Introduced in House

Classification: Bill

Purpose and Intent

The Mortgage Relief for Disaster Survivors Act aims to provide financial relief to individuals and families who have been affected by natural disasters. The bill seeks to alleviate the burden of mortgage payments for disaster survivors, ensuring that they can focus on recovery without the additional stress of housing costs.

Key Provisions

The bill includes several significant provisions designed to support disaster survivors:

• Mortgage Payment Relief: The legislation proposes a temporary suspension of mortgage payments for homeowners who have experienced a qualifying disaster. This relief would be applicable for a specified period following the disaster declaration.

• Eligibility Criteria: Homeowners must demonstrate that their property was damaged or destroyed due to a federally declared disaster to qualify for relief.

• Loan Modification Options: The bill encourages lenders to offer loan modifications for affected homeowners, allowing for adjustments in payment terms to accommodate the financial strain caused by the disaster.

• Funding for Support Services: The legislation allocates funds for counseling services to assist homeowners in navigating the recovery process and understanding their options regarding mortgage relief.

Affected Parties

The primary beneficiaries of HR 2928 are:

• Homeowners: Individuals and families whose homes have been impacted by natural disasters will receive direct financial relief.

• Lenders: Financial institutions will be required to implement the provisions of the bill, which may involve adjustments to their standard practices regarding mortgage payments and modifications.

• Community Organizations: Organizations providing support services to disaster survivors will receive funding to enhance their capacity to assist affected homeowners.

Procedural Aspects

• Committee Review: Upon introduction, the bill was referred to the House Committee on Financial Services for further consideration. This committee will review the bill, hold hearings, and may propose amendments before it is brought to the floor for a vote.

• Sponsorship: The bill is sponsored by Judy Chu and has multiple cosponsors, including notable representatives such as Joe Neguse, Sylvia R. Garcia, and Ayanna Pressley. The broad support indicates a collective recognition of the need for disaster relief measures.

Conclusion

The Mortgage Relief for Disaster Survivors Act represents a proactive approach to addressing the financial challenges faced by homeowners in the aftermath of natural disasters. By providing temporary relief and support, the bill aims to facilitate recovery and stability for affected families and communities. As it moves through the legislative process, further developments and potential modifications may arise, reflecting the ongoing dialogue around disaster recovery and housing stability.