Superstorm Sandy Mortgage Relief Act of 2013

Summary: Superstorm Sandy Mortgage Relief Act of 2013 - Directs the Secretary of Housing and Urban Development (HUD) and the Director of the Federal Housing Agency to carry out a program to notify mortgagors under covered mortgages of the availability of forbearance and to offer and provide such relief upon an eligible homeowner's request. Defines &quot;covered mortgage&quot; as one that: (1) is secured by a one- to four-family dwelling that is the mortgagor's principal residence and is located within a major disaster area resulting from Hurricane Sandy; and (2) is insured under the National Housing Act or owned or guaranteed by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac).

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Superstorm Sandy Mortgage Relief Act 
of 2013''.

SEC. 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.