Financial Services Committee Chairwoman Maxine Waters (D-CA) introduced the Emergency Housing Protections and Relief Act (H.R. 7301) this week to protect renters and homeowners, including reverse mortgage borrowers, impacted by COVID-19.
Under the legislation, a reverse mortgage borrower who defaults on paying property charges, or a property charge plan or completing repairs during the covered pandemic period will automatically receive a six-month extension on having their loan called due and payable.
H.R. 7301 was included as part of the HEROES Act, which passed the House of Representatives on May 15 but has stalled in the Senate. Chairwoman Waters introduced H.R. 7301 as a stand-alone bill to help improve its chances of passing.
In addition to the HECM protections, the legislation would:
- Provide $100 billion for an emergency rental assistance fund and $75 billion for a homeowners assistance fund to ensure renters and homeowners can cover their housing expenses, including rent, mortgage payments, and utility bills; and
- Extend and expand the eviction and foreclosure moratoria for all renters and homeowners, as well as provide additional forbearance relief.