Disaster Response Reform Act of 2015

Summary: Disaster Response Reform Act of 2015 Amends the Robert T. Stafford Disaster Relief and Emergency Assistance Act to require the President, in providing repair or replacement assistance to owner-occupied private residences damaged by a major disaster declared after enactment of this Act, to: (1) treat an owner-occupied housing unit of a housing cooperative in the same manner as an owner-occupied private residence, and (2) provide financial assistance for such units on a unit-by-unit basis. Authorizes the President to provide such assistance in connection with essential living items that are owned by the association for a housing cooperative and located in an owner-occupied housing unit of the cooperative.  Directs the President to provide such repair or replacement assistance in connection with damaged personal property that is located in the basement of an owner-occupied private residence in the same manner and to the same extent as personal property that is is located in any other portion of the residence. Requires the Department of Housing and Urban Development (HUD) (for a covered mortgage that is owned or guaranteed by the Federal National Mortgage Association [Fannie Mae] or the Federal Home Loan Mortgage Corporation [Freddie Mac]) and the Federal Housing Finance Agency (FHFA) to prohibit mortgagees and servicers from initiating or taking action to further any foreclosure with respect to a covered mortgage for 90 days after a presidential declaration of the disaster. Defines a "covered mortgage" as a mortgage 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 declared by the President; and (2) is insured by the Federal Housing Administration or owned or guaranteed by Fannie Mae or Freddie Mac.  Sets forth requirements for: (1) notification by mortgagees to mortgagors regarding such forbearance relief, (2) requests by mortgagors to mortgagees for such relief; and (3) determinations by mortgagees regarding a mortgagor's eligibility for relief. Requires a mortgagee who determines, pursuant to a mortgagor's request, that such mortgagor is an eligible homeowner, to submit to the eligible homeowner:  a written offer for forbearance that meets the requirements of this Act; explanations of the terms of such offer, when it will expire, and what action the mortgagor must take to accept it; and  notification that the mortgagor and the mortgagee can agree to terms of forbearance in lieu of or in addition to forbearance relief required to be offered under this Act and how to contact the mortgagee regarding such relief.  Sets forth required terms of such forbearance, including: (1) a suspension of mortgage payments for at least six months, and (2) recoupment of any resulting arrearage by increasing the monthly payments due after the forbearance period by an not more than 5% of the monthly amount that would otherwise be due. Directs HUD to enforce compliance by mortgagees with this Act and the guidelines issued under it.  Requires the FHFA, upon determining that a mortgagee has violated this Act, to prohibit Fannie Mae and Freddie Mac from acquiring or otherwise newly dealing in any mortgage of or originated by such mortgagee for 12 months.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disaster Response Reform Act of 
2015''.

    TITLE I--FEMA DISASTER ASSISTANCE TO INDIVIDUALS AND HOUSEHOLDS

SEC. 101. HOUSING UNITS IN HOUSING COOPERATIVES.

    (a) Housing Cooperative Defined.--Section 102 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122) 
is amended by adding at the end the following:
            ``(13) Housing cooperative.--The term `housing cooperative' 
        means a multi-unit housing project in which each dwelling unit 
        is subject to separate use and possession by one or more 
        cooperative members whose interest in such unit, and in any 
        undivided assets of the cooperative association that are 
        appurtenant to such unit, is evidenced by a membership or share 
        interest in a cooperative association and a lease or other 
        document of title or possession granted by such cooperative as 
        the owner of all cooperative property.''.
    (b) Major Disaster Assistance to Individuals and Households.--
Section 408(c) of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5174(c)) is amended by adding at the end the 
following:
            ``(5) Housing cooperatives.--
                    ``(A) Damaged housing units.--In carrying out 
                paragraphs (2) and (3), the President shall--
                            ``(i) treat an owner-occupied housing unit 
                        of a housing cooperative in the same manner as 
                        an owner-occupied private residence; and
                            ``(ii) provide financial assistance for 
                        owner-occupied housing units of housing 
                        cooperatives on a unit-by-unit basis.
                    ``(B) Essential living items.--
                            ``(i) Eligibility for financial 
                        assistance.--The President may provide 
                        financial assistance under paragraphs (2) and 
                        (3) in connection with essential living items 
                        that are owned by the association for a housing 
                        cooperative and located in an owner-occupied 
                        housing unit of the housing cooperative.
                            ``(ii) Procedures.--
                                    ``(I) In general.--The President 
                                shall establish procedures for 
                                providing assistance under clause (i). 
                                The procedures shall ensure that 
                                essential services in individual 
                                housing units of housing cooperatives 
                                are promptly restored following a major 
                                disaster and such units are returned to 
                                a safe and sanitary living or 
                                functioning condition.
                                    ``(II) Recipients of assistance.--
                                Under such procedures, the President 
                                may provide financial assistance 
                                directly to residents of owner-occupied 
                                housing units of a housing cooperative 
                                or to the association for the housing 
                                cooperative.
                    ``(C) Essential living item defined.--In this 
                paragraph, the term `essential living item' means those 
                items necessary to return a residence to a safe and 
                sanitary living or functioning condition.''.
    (c) Applicability.--The amendment made by subsection (b) shall 
apply to a major disaster declared by the President under section 401 
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5170) after the date of enactment of this Act.

SEC. 102. PERSONAL PROPERTY IN BASEMENTS.

    (a) In General.--Section 408(c) of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5174(c)) is further 
amended by adding at the end the following:
            ``(6) Personal property in basements.--
                    ``(A) Financial assistance for damaged personal 
                property.--In carrying out paragraphs (2) and (3), the 
                President shall provide financial assistance in 
                connection with personal property that is damaged in a 
                major disaster and is located in the basement of an 
                owner-occupied private residence in the same manner and 
                to the same extent as personal property that is damaged 
                in a major disaster and is located in any other portion 
                of the residence.
                    ``(B) Basement defined.--In this paragraph, the 
                term `basement' means an enclosed area of a dwelling 
                where any portion of the exterior wall or concrete 
                floor is below grade.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to a major disaster declared by the President under section 401 
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5170) after the date of enactment of this Act.

       TITLE II--MORTGAGE RELIEF FOR HOMEOWNERS IN DISASTER AREAS

SEC. 201. 90-DAY MORATORIUM ON FORECLOSURES.

    (a) Minimum Requirement.--Each applicable agency head (as such term 
is defined in section 204) shall prohibit mortgagees and servicers 
under covered mortgages from initiating any foreclosure, whether 
judicial or nonjudicial, or taking any action in furtherance of a 
foreclosure already commenced, including conducting any foreclosure 
sale, with respect to the covered mortgage during the 90-day period 
that begins upon the Presidential declaration of the disaster referred 
to in section 204(2)(A)(ii) with respect to such mortgage.
    (b) Additional Relief.--Subsection (a) may not be construed to 
prevent or prohibit an applicable agency head from extending the period 
specified in such subsection or taking any other relief or forbearance 
action with respect to covered mortgages.

SEC. 202. REQUIREMENT TO OFFER FORBEARANCE TO AFFECTED HOMEOWNERS.

    (a) Notification.--Each applicable agency head shall require each 
mortgagee of a covered mortgage to notify the mortgagor under the 
mortgage, in writing, not later than the expiration of the 45-day 
period that begins upon the Presidential declaration of the disaster 
referred to in section 204(2)(A)(ii) with respect to such mortgage, and 
in such form as the applicable agency heads shall require pursuant to 
guidelines issued under section 205--
            (1) that the mortgage is a covered mortgage that may be 
        eligible for forbearance relief under this section;
            (2) of the requirements for eligible homeowners to qualify 
        for such relief;
            (3) of the terms of such relief;
            (4) of what action the mortgagor must take to request such 
        relief;
            (5) that the mortgagor and the mortgagee can agree to terms 
        of forbearance in lieu of or in addition to forbearance relief 
        that may be required under this section to be offered to the 
        mortgagor; and
            (6) how to contact the mortgagee regarding such additional 
        or alternative relief.
    (b) Request for Relief.--The applicable agency heads shall, by 
guidelines issued under section 205, provide for mortgagors under 
covered mortgages to submit requests, during the 90-day period 
beginning upon the expiration of the notification period under 
subsection (a), to the mortgagees of such mortgages for forbearance 
relief under this section.
    (c) Determination.--Upon receipt of a request made by a mortgagor 
under a covered mortgage for forbearance relief under this section that 
is submitted during the period referred to in subsection (b), the 
mortgagee shall promptly determine whether the mortgagor is an eligible 
homeowner and immediately notify the mortgagor in writing of such 
determination.
    (d) Requirement To Offer Forbearance.--If, pursuant to a request 
for relief submitted pursuant to subsection (b) 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 (c) 
submit to the eligible homeowner--
            (1) a written offer for forbearance that meets the 
        requirements of subsection (e);
            (2) an explanation of the terms of such offer and when such 
        offer will expire;
            (3) an explanation of what action the mortgagor must take 
        to accept such offer;
            (4) notification that the mortgagor and the mortgagee can 
        agree to terms of forbearance in lieu of or in addition to 
        forbearance relief required under this section to be offered to 
        the mortgagor; and
            (5) how to contact the mortgagee regarding such additional 
        or alternative relief.
    (e) 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--
                            (i) for the suspension of payments due 
                        under the mortgage for a period that--
                                    (I) has a duration that is not 
                                shorter than 6 months; and
                                    (II) begins after the declaration 
                                of the major disaster referred to in 
                                section 204(2)(A)(ii) but not later 
                                than 120 days after such declaration, 
                                and may cover periods for which 
                                payments due under the mortgage were 
                                not paid that occurred before the offer 
                                for relief under this section was 
                                accepted; and
                            (ii) for recoupment of any arrearage of 
                        amounts due under the mortgage resulting from 
                        forbearance to by increasing the monthly 
                        payments due under the mortgage after the 
                        expiration of the forbearance period by an 
                        amount not exceeding 5 percent of the monthly 
                        amount that would otherwise be due for such 
                        month under the original terms of the mortgage; 
                        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 section 205, provide 
        for the terms, requirements, and procedures for forbearance 
        offered under this section.
    (f) Other Forbearance.--
            (1) Agreements between mortgagor and mortgagee.--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 forms or terms of 
        forbearance, regardless of whether such eligible homeowner 
        makes a request under subsection (b) or receives an offer of 
        forbearance pursuant to subsection (d).
            (2) Limitations on agencies.--An applicable agency head may 
        not establish--
                    (A) any limitations or restrictions on the forms or 
                terms of forbearance relief that a mortgagee may offer 
                or agree to with respect to a covered mortgage, 
                including the duration of the forbearance period, the 
                duration of the period for recoupment of arrearages 
                resulting from forbearance, and the amount of principal 
                forgiven; or
                    (B) any requirement that a mortgagee obtain 
                approval of the agency head before the mortgagee may 
                offer or agree to any particular forms or terms of 
                forbearance relief with respect to a covered mortgage.

SEC. 203. ENFORCEMENT.

    (a) FHA.--The Secretary and the Mortgagee Review Board shall 
enforce compliance by mortgagees with this title and the guidelines 
issued to carry out this title under section 202(c) of the National 
Housing Act (12 U.S.C. 1708(c)).
    (b) Fannie Mae and Freddie Mac.--If the Director determines, on the 
record after an opportunity for an agency hearing, that a mortgagee has 
violated this title or the guidelines issued to carry out this title, 
the Director shall prohibit the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Corporation from purchasing, 
acquiring, newly lending on the security of, newly investing in 
securities consisting of, or otherwise newly dealing in any mortgage of 
or originated by such mortgagee for a period of 12 months.

SEC. 204. DEFINITIONS.

    For purposes of this title, 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 paragraph (2)(B)(i); and
                    (B) the Director, with respect to a covered 
                mortgage described in paragraph (2)(B)(ii).
            (2) Covered mortgage.--The term ``covered mortgage'' means 
        a mortgage--
                    (A) that is secured by a one- to four-family 
                dwelling that--
                            (i) is the principal residence of the 
                        mortgagor; and
                            (ii) 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); 
                        and
                    (B) that is--
                            (i) insured under title II of the National 
                        Housing Act (12 U.S.C. 1707 et seq.); or
                            (ii) owned or guaranteed by the Federal 
                        National Mortgage Association or the Federal 
                        Home Loan Mortgage Corporation.
            (3) Director.--The term ``Director'' means the Director of 
        the Federal Housing Finance Agency.
            (4) Eligible homeowner.--The term ``eligible homeowner'' 
        means a mortgagor under a covered mortgage whose--
                    (A) household experienced a disruption in income as 
                a result of the major disaster referred to in paragraph 
                (2)(A)(ii), as determined in accordance with guidelines 
                issued pursuant to section 205; or
                    (B) residence that secures the mortgage was damaged 
                as a result of the major disaster referred to in 
                paragraph (2)(A)(ii), as determined in accordance with 
                guidelines issued pursuant to section 205.
            (5) 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.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.

SEC. 205. 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 regulations to carry out this title.