Disaster Response Reform Act of 2015

To amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to provide assistance for housing cooperatives damaged by a major disaster, to provide relief to homeowners affected by major disasters who have mortgages insured by the FHA or owned or guaranteed by Fannie Mae or Freddie Mac, and for other purposes. 1. Short title This Act may be cited as the Disaster Response Reform Act of 2015 I FEMA Disaster Assistance to Individuals and Households 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 (13) Housing cooperative The term housing cooperative . (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) (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 . (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 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) (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 . (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 II Mortgage Relief for Homeowners in Disaster Areas 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. 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. 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. 204. Definitions For purposes of this title, the following definitions shall apply: (1) Applicable agency head The term applicable agency head (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 (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 (B) that is— (i) insured under title II of the National Housing Act ( 12 U.S.C. 1707 et seq. (ii) owned or guaranteed by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. (3) Director The term Director (4) Eligible homeowner The term eligible homeowner (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 (6) Secretary The term Secretary 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.

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.