After Los Angeles Wildfires Destroyed 16,000 Homes, Reps. Chu, Sherman Introduce Legislation to Provide Needed Mortgage Relief

WASHINGTON, D.C. – Today, Reps. Judy Chu (CA-28) and Brad Sherman (CA-32) introduced H.R. 2928, the Mortgage Relief for Disaster Survivors Act, which would provide homeowners in presidentially declared disaster areas who have a federally backed mortgage with 180 days of mortgage forbearance, with the option of extending for an additional 180 days and without any interest, penalties, or fees accruing. 

While present law allows for a significant amount of variance across federal mortgage providers to provide relief, this legislation would standardize a baseline of mortgage relief for survivors of any federally declared disaster all across the country. In response to the COVID-19 pandemic, the bipartisan CARES Act, which was signed into law by President Trump in 2020 and which received near unanimous support in both the House and Senate, provided 180 days of mortgage forbearance, with the option of extending for an additional 180 days, for all homeowners with federally backed mortgages. The Mortgage Relief for Disaster Survivors Act is modeled after the mortgage forbearance provisions of that bipartisan law. 

“Disaster survivors – like thousands of my constituents still reeling from the devastating Eaton Fire – should not have to worrying about missing a mortgage payment in the immediate aftermath of natural disasters,” said Rep. Chu. “Our legislation was drafted after countless conversations with constituents who reached out in the days after the fire worried about making their next mortgage payment. Congress has already worked with President Trump during the coronavirus crisis to provide bipartisan and near unanimous support for such relief for pandemic victims, and the Los Angeles wildfires have made clear to us that all natural disaster victims should receive that relief as well.” 

“I’m proud to join Congresswoman Chu in working to ensure wildfire victims have the financial relief and stability they need to rebuild,” said Congressman Brad Sherman. “The devastating January wildfires in Los Angeles caused widespread economic harm, and just as we acted with urgency and compassion during the COVID-19 pandemic, we must now adapt the forbearance rules to meet the scale of this disaster.”

Reps. Chu and Sherman are joined as cosponsors by: Reps. Linda Sánchez (CA-38), Laura Friedman (CA-30), Cleo Fields (LA-06), Jimmy Gomez (CA-34), Lou Correa (CA-46), Ayanna Pressley (MA-07), Jill Tokuda (HI-02), Shri Thanedar (MI-13), Jared Huffman (CA-02), Joe Neguse (CO-02), and Sylvia Garcia (TX-29).

This legislation is also endorsed by Neighborhood Housing Services of Los Angeles County and Consumer Federation of America.

Click here for the bill text.