To amend the CARES Act to provide for repayment terms for mortgages in forbearance, and for other purposes.
Bill: H.R.162 | Sponsor: Rep. Soto, Darren (D-FL)
Policy area: Housing and Community Development

Summary:
This bill establishes repayment terms for federally-related mortgages in forbearance as part of existing COVID-19 (i.e., coronavirus disease 2019) economic aid programs. Specifically, the term of such a mortgage must be extended for the same length of time as the length of the forbearance. Additionally, the payments due during the forbearance must be evenly distributed across future payments with no additional interest or fees beyond amounts otherwise due had the borrower made such payments on time and in full.

To amend the CARES Act to provide for repayment terms for mortgages in 
                  forbearance, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REPAYMENT TERMS FOR MORTGAGES IN FORBEARANCE.

    (a) In General.--The CARES Act (Public Law 116-136) is amended by 
inserting after section 4022 the following:

``SEC. 4022A. REPAYMENT TERMS FOR MORTGAGES IN FORBEARANCE.

    ``(a) In General.--With respect to a federally related mortgage 
loan with respect to which a forbearance was granted during the COVID-
19 emergency period (either pursuant to this Act or any other Federal 
law or voluntarily by the servicer of such mortgage loan), the servicer 
of such mortgage loan shall modify the borrower's loan to extend the 
term for the same period as the length of the forbearance, with all 
payments that were not made during the forbearance distributed at the 
same intervals as the borrower's existing payment schedule and evenly 
distributed across those intervals, with no penalties, late fees, 
additional interest accrued beyond the amounts scheduled or calculated 
as if the borrower made all contractual payments on time and in full 
under the terms of the mortgage contract in effect at the time the 
borrower entered into the forbearance, and with no modification fee 
charged to the borrower.
    ``(b) Enforcement.--The enforcement authority provided under the 
Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) 
shall apply to this section.
    ``(c) Definitions.--In this section:
            ``(1) Federally related mortgage loan.--The term `federally 
        related mortgage loan' has the meaning given that term under 
        section 3 of the Real Estate Settlement Procedures Act of 1974 
        (12 U.S.C. 2602).
            ``(2) Covid-19 emergency period.--The term `COVID-19 
        emergency period' means the period between--
                    ``(A) March 13, 2020, the date on which the 
                President declared a national emergency concerning the 
                novel coronavirus disease (COVID-19) outbreak under the 
                National Emergencies Act (50 U.S.C. 1601 et seq.); and
                    ``(B) December 31, 2021.''.
    (b) Clerical Amendment.--The table of contents for the CARES Act is 
amended by inserting after the item relating to section 4022 the 
following:

``Sec. 4022A. Repayment terms for mortgages in forbearance.''.
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