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%.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4255 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4255
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 14, 2014
Mr. Cartwright (for himself, Mr. Horsford, Mr. Connolly, Mr. George
Miller of California, Mrs. Napolitano, Mr. Grijalva, Mr. Van Hollen,
Mr. Nolan, Ms. Hahn, Ms. Slaughter, Ms. Lee of California, Mr. Farr,
Mr. Honda, Ms. Loretta Sanchez of California, Ms. Eshoo, Ms. Speier,
Mr. Hastings of Florida, Mr. Johnson of Georgia, Mr. Tonko, Mr. Fattah,
Mr. Brady of Pennsylvania, Ms. Jackson Lee, Ms. Eddie Bernice Johnson
of Texas, Mr. Lynch, Ms. Bonamici, Mr. DeFazio, Mr. Cohen, Mr.
Cardenas, Ms. Kaptur, Mr. Rush, Mr. Garcia, Mr. Neal, Ms. Pingree of
Maine, Mr. Ellison, Mr. Pallone, Mr. Langevin, Ms. Norton, Mr. Doyle,
Ms. Chu, Mr. Thompson of California, Mr. Conyers, Ms. Clark of
Massachusetts, Mr. Rangel, Ms. Wilson of Florida, Ms. Shea-Porter, Ms.
Lofgren, Ms. Brown of Florida, Mr. Carson of Indiana, Ms. Velazquez,
Mr. Takano, Mr. Ruppersberger, Ms. Roybal-Allard, Mr. Gene Green of
Texas, Mr. Clay, and Ms. DeLauro) introduced the following bill; which
was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Foreclosures Due to
Congressional Dysfunction Act of 2014''.
SEC. 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'' means the Director of
the Federal Housing Finance Agency.
(2) Eligible mortgage.--The term ``eligible mortgage''
means a mortgage that meets the requirements of subsection (c).
(3) Foreclosure moratorium period.--The term ``foreclosure
moratorium period'' means, with respect to an eligible
mortgage, the period specified in subsection (d) for the
mortgage.
(4) Mortgagee.--The term ``mortgagee'' includes, with
respect to an eligible mortgage, any creditor, servicer, or
holder of such eligible mortgage, and any other person acting
on behalf of any such creditor, servicer, or holder.
(5) Regular compensation; extended compensation; additional
compensation.--The terms ``regular compensation'', ``extended
compensation'', and ``additional compensation'' have the
meanings given such terms in section 205 of the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304
note).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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