Stop Foreclosures Due to Congressional Dysfunction Act of 2014

To require the Federal Housing Finance Agency to establish a 6-month moratorium on foreclosure of mortgages guaranteed by Fannie Mae or Freddie Mac on homes of individuals who have lost Federal unemployment insurance as a result of the expiration of such program, and for other purposes. 1. Short title This Act may be cited as the Stop Foreclosures Due to Congressional Dysfunction Act of 2014 2. Mortgage foreclosure moratorium (a) Moratorium The Director of the Federal Housing Finance Agency shall prohibit mortgagees of eligible mortgages under subsection (c) from initiating a foreclosure, whether judicial or nonjudicial, or taking any action in furtherance of a foreclosure already initiated, including any foreclosure sale, with respect to any eligible mortgage during the foreclosure moratorium period under subsection (d) for such eligible mortgage. (b) Treatment of mortgage payments due during foreclosure moratorium period (1) Deferral of mortgage payments; interest due The Director shall provide that, during the foreclosure moratorium period with respect to an eligible mortgage— (A) the term of the mortgage shall toll; (B) any payments of principal and interest due under the mortgage shall be deferred; and (C) interest on outstanding principal due under the mortgage shall continue to accrue at the rate provided for under the mortgage. (2) Resumption of mortgage payments; amortization of interest accrued The Director shall provide that, upon the expiration of the foreclosure moratorium period with respect to an eligible mortgage— (A) the term of the mortgage, and the responsibility of the mortgagor to make payments of principal and interest due under the mortgage, shall resume; and (B) any interest accrued pursuant to paragraph (1)(C) shall be amortized, and payable, over the remaining term of the mortgage. (c) Eligible mortgage An eligible mortgage under this subsection is a mortgage that— (1) is owned, held, securitized, or guaranteed by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation; (2) is a mortgage on a 1- to 4-family residence that is the principal residence of the mortgagor; (3) was current with respect to payments of principal and interest, and any taxes, insurance, and other amounts required to be paid in escrow, that were due under the mortgage as of the beginning of the foreclosure moratorium period with respect to such eligible mortgage; and (4) has a mortgagor who— (A) (i) received extended compensation or additional compensation for a week of unemployment ending at any time during the 7-day period ending January 1, 2014; (ii) has exhausted all rights to regular compensation under the unemployment compensation law of a State at any time during the period beginning January 1, 2014, and ending on the date of enactment of this Act and has remained continuously unemployed throughout such period; or (iii) exhausts all rights to regular compensation under the unemployment compensation law of a State at any time during the period beginning on the date of enactment of this Act and ending on July 1, 2014; and (B) as of the beginning of the foreclosure moratorium period with respect to such eligible mortgage, has a ratio of debt to income, as determined in accordance with such requirements as the Director shall establish, that was greater than 40 percent. (d) Foreclosure moratorium period The foreclosure moratorium period under this subsection with respect to an eligible mortgage shall be the 6-month period beginning upon— (1) in the case of an eligible mortgage of a mortgagor described in clause (i) or (ii) of subsection (c)(4)(A), the date of the enactment of this Act; and (2) in the case of an eligible mortgage of a mortgagor described in clause (iii) of subsection (c)(4)(A), the date on which such mortgagor exhausts all rights to regular compensation under the unemployment compensation law of a State. (e) Definitions For purposes of this section, the following definitions shall apply: (1) Director The term Director (2) Eligible mortgage The term eligible mortgage (3) Foreclosure moratorium period The term foreclosure moratorium period (4) Mortgagee The term mortgagee (5) Regular compensation; extended compensation; additional compensation The terms regular compensation extended compensation additional compensation 26 U.S.C. 3304

Summary: Stop Foreclosures Due to Congressional Dysfunction Act of 2014 - Requires the Director of the Federal Housing Finance Agency (FHFA) to prohibit mortgagees of certain eligible mortgages from initiating a foreclosure during a specified six-month moratorium with respect to any of those mortgages owned, held, securitized, or guaranteed by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac). Tolls the term of such mortgages during the moratorium, and requires deferral of any principal and interest payments due. Qualifies for this mortatorium only Fannie Mae or Freddie Mac mortgages on a 1- to 4-family residence that is the principal residence of a mortgagor who: (1) was current on principal, interest, tax, and insurance payments at the start of the moratorium; (2) has received unemployment compensation during a certain period but exhausted all rights to it; and (3) as of the beginning of the moratorium has a ratio of debt to income on the mortgage greater than 40%.