COVID-19 Mortgage Relief Act

This bill extends protections for renters and mortgage borrowers provided in response to the COVID-19 (i.e., coronavirus disease 2019) emergency, revises bankruptcy provisions, and expands COVID-19 aid programs to include mortgage servicers.

Mortgage forbearance may be extended to borrowers for up to 12 months. Currently, borrowers may receive 180 days of forbearance, with an extension of up to an additional 180 days. The bill also expands the forbearance provisions to apply to nonfederally backed mortgages.

The bill expands the current moratorium on evictions of renters from property receiving a forbearance to generally protect all such renters, not only renters in federally assisted housing or property that has a federally backed mortgage.

The current moratorium on mortgage foreclosures is extended from 60 days beginning on March 18, 2020, to 6 months after enactment of this bill. The bill also expands this moratorium to include nonfederally backed mortgages.

Additionally, the bill generally revises bankruptcy provisions. COVID-19 aid is excluded from property subject to bankruptcy proceedings and the homestead exemption available to individual debtors is increased, among other protections.

Existing COVID-19 economic aid programs are expanded to include mortgage servicers. The Department of the Treasury must allow mortgage servicers to participate in these programs to receive loans, loan guarantees, and other investments currently offered to eligible businesses, states, and municipalities.