15 U.S.C. § 9056 — Foreclosure moratorium and consumer

Page 2530 TITLE 15—COMMERCE AND TRADE § 9056 (2) Contracting The Oversight Commission may, to such ex- tent and in such amounts as are provided in appropriation Acts, enter into contracts to en- able the Oversight Commission to discharge its duties under this section. (3) Powers of members and agents Any member or agent of the Oversight Com- mission may, if authorized by the Oversight Commission, take any action which the Over- sight Commission is authorized to take by this section. (4) Obtaining official data The Oversight Commission may secure di- rectly from any department or agency of the United States information necessary to enable it to carry out this section. Upon request of the Chairperson of the Oversight Commission, the head of that department or agency shall furnish that information to the Oversight Commission. (5) Reports The Oversight Commission shall receive and consider all reports required to be submitted to the Oversight Commission under this part. (f) Termination The Oversight Commission shall terminate on June 30, 2023. (g) Funding for expenses (1) Authorization of appropriations There is authorized to be appropriated to the Oversight Commission such sums as may be necessary for any fiscal year, half of which shall be derived from the applicable account of the House of Representatives, and half of which shall be derived from the contingent fund of the Senate. (2) Reimbursement of amounts An amount equal to the expenses of the Oversight Commission shall be promptly transferred by the Secretary and the Board of Governors of the Federal Reserve System, from time to time upon the presentment of a statement of such expenses by the Chairperson of the Oversight Commission, from funds made available to the Secretary under this part to the applicable fund of the House of Represent- atives and the contingent fund of the Senate, as appropriate, as reimbursement for amounts expended from such account and fund under paragraph (1). (Pub. L. 116–136, div. A, title IV, § 4020, Mar. 27, 2020, 134 Stat. 486; Pub. L. 117–328, div. AA, title VIII, § 801, Dec. 29, 2022, 136 Stat. 5551.) Editorial Notes REFERENCES IN TEXT This part, referred to in subsecs. (b), (d)(3), (e)(5), and (g)(2), was in the original ‘‘this subtitle’’, meaning sub- title A (§§ 4001–4029) of title IV of div. A of Pub. L. 116–136, known as the Coronavirus Economic Stabiliza- tion Act of 2020, which is classified principally to this part. For complete classification of subtitle A to the Code, see section 4001 of Pub. L. 116–136, set out as a Short Title note under section 9001 of this title, and Ta- bles. Level I of the Executive Schedule, referred to in sub- sec. (c)(2), is set out in section 5312 of Title 5, Govern- ment Organization and Employees. AMENDMENTS 2022—Subsec. (f). Pub. L. 117–328 substituted ‘‘June 30, 2023’’ for ‘‘September 30, 2025’’. § 9056. Foreclosure moratorium and consumer right to request forbearance (a) Definitions In this section: (1) COVID–19 emergency The term ‘‘COVID–19 emergency’’ means the national emergency concerning the novel coronavirus disease (COVID–19) outbreak de- clared by the President on March 13, 2020 under the National Emergencies Act (50 U.S.C. 1601 et seq.). (2) Federally backed mortgage loan The term ‘‘Federally backed mortgage loan’’ includes any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1- to 4- families that is— (A) insured by the Federal Housing Admin- istration under title II of the National Hous- ing Act (12 U.S.C. 1707 et seq.); (B) insured under section 255 of the Na- tional Housing Act (12 U.S.C. 1715z–20); (C) guaranteed under section 1715z–13a or 1715z–13b of title 12; (D) guaranteed or insured by the Depart- ment of Veterans Affairs; (E) guaranteed or insured by the Depart- ment of Agriculture; (F) made by the Department of Agri- culture; or (G) purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association. (b) Forbearance (1) In general During the covered period, a borrower with a Federally backed mortgage loan experiencing a financial hardship due, directly or indi- rectly, to the COVID–19 emergency may re- quest forbearance on the Federally backed mortgage loan, regardless of delinquency sta- tus, by— (A) submitting a request to the borrower’s servicer; and (B) affirming that the borrower is experi- encing a financial hardship during the COVID–19 emergency. (2) Duration of forbearance Upon a request by a borrower for forbear- ance under paragraph (1), such forbearance shall be granted for up to 180 days, and shall be extended for an additional period of up to 180 days at the request of the borrower, pro- vided that, at the borrower’s request, either the initial or extended period of forbearance may be shortened. (3) Accrual of interest or fees During a period of forbearance described in this subsection, no fees, penalties, or interest Page 2531 TITLE 15—COMMERCE AND TRADE § 9056 beyond the amounts scheduled or calculated as if the borrower made all contractual pay- ments on time and in full under the terms of the mortgage contract, shall accrue on the borrower’s account. (c) Requirements for servicers (1) In general Upon receiving a request for forbearance from a borrower under subsection (b), the servicer shall with no additional documenta- tion required other than the borrower’s attes- tation to a financial hardship caused by the COVID–19 emergency and with no fees, pen- alties, or interest (beyond the amounts sched- uled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract) charged to the borrower in connection with the forbearance, provide the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the re- quest of the borrower, provided that, the bor- rower’s request for an extension is made dur- ing the covered period, and, at the borrower’s request, either the initial or extended period of forbearance may be shortened. (2) Foreclosure moratorium Except with respect to a vacant or aban- doned property, a servicer of a Federally backed mortgage loan may not initiate any ju- dicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale for not less than the 60-day period beginning on March 18, 2020. (Pub. L. 116–136, div. A, title IV, § 4022, Mar. 27, 2020, 134 Stat. 490.) Editorial Notes REFERENCES IN TEXT The National Emergencies Act, referred to in subsec. (a)(1), is Pub. L. 94–412, Sept. 14, 1976, 90 Stat. 1255, which is classified principally to chapter 34 (§ 1601 et seq.) of Title 50, War and National Defense. For com- plete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 50 and Ta- bles. The National Housing Act, referred to in subsec. (a)(2)(A), is act June 27, 1934, ch. 847, 48 Stat. 1246. Title II of the Act is classified generally to subchapter II (§ 1707 et seq.) of chapter 13 of Title 12, Banks and Bank- ing. For complete classification of this Act to the Code, see section 1701 of Title 12 and Tables. Executive Documents EX. ORD. NO. 13945. FIGHTING THE SPREAD OF COVID–19 BY PROVIDING ASSISTANCE TO RENTERS AND HOMEOWNERS Ex. Ord. No. 13945, Aug. 8, 2020, 85 F.R. 49935, provided: By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: SECTION 1. Purpose. The 2019 novel coronavirus (COVID–19) pandemic, which originated in the People’s Republic of China, continues to pose a significant threat to the health of Americans throughout the United States. As we have since January 2020, with the proactive decision to limit travel from China and the passage of three massive economic relief packages, my Administration will take whatever steps are necessary to reduce the spread of COVID–19 and maintain eco- nomic prosperity. The Centers for Disease Control and Prevention (CDC) of the Department of Health and Human Services have concluded that ‘‘growing and disproportionate un- employment rates for some racial and ethnic minority groups during the COVID–19 pandemic may lead to greater risk of eviction and homelessness or sharing of housing.’’ This trend is concerning for many reasons, including that homeless shelters have proven to be particularly susceptible to outbreaks of COVID–19. CDC has ob- served that ‘‘[h]omelessness poses multiple challenges that can exacerbate and amplify the spread of COVID–19. Homeless shelters are often crowded, mak- ing social distancing difficult. Many persons experi- encing homelessness are older or have underlying med- ical conditions, placing them at higher risk for severe COVID–19-associated illness.’’ Increased shared housing is also potentially problematic to the extent it results in increased in-person interactions between older, high- er-risk individuals and their younger relatives or friends. My Administration has taken bold steps to help rent- ers and homeowners have safe and secure places to call home during the COVID–19 crisis. Prior to passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Public Law 116–136), the Secretary of Housing and Urban Development implemented a fore- closure and eviction moratorium for all single-family mortgages insured by the Federal Housing Administra- tion. Furthermore, prior to passage of the CARES Act, the Federal Housing Finance Agency (FHFA) an- nounced that it had instructed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (the Enterprises) to suspend foreclosures for at least 60 days. FHFA has since an- nounced that the Enterprises will extend the fore- closure suspension until at least August 31, 2020. The CARES Act imposed a temporary moratorium on evictions of certain renters subject to certain condi- tions. That moratorium has now expired, and there is a significant risk that this will set off an abnormally large wave of evictions. With the failure of the Con- gress to act, my Administration must do all that it can to help vulnerable populations stay in their homes in the midst of this pandemic. Those who are dislocated from their homes may be unable to shelter in place and may have more difficulty maintaining a routine of so- cial distancing. They will have to find alternative liv- ing arrangements, which may include a homeless shel- ter or a crowded family home and may also require traveling to other States. In addition, evictions tend to disproportionately af- fect minorities, particularly African Americans and Latinos. Unlike the Congress, I cannot sit idly and refuse to assist vulnerable Americans in need. Under my Administration, minorities achieved the lowest un- employment rates on record, and we will not let COVID–19 erase these gains by causing short-term dis- locations that could well have long-term consequences. Accordingly, my Administration, to the extent rea- sonably necessary to prevent the further spread of COVID–19, will take all lawful measures to prevent res- idential evictions and foreclosures resulting from fi- nancial hardships caused by COVID–19. SEC. 2. Policy. It is the policy of the United States to minimize, to the greatest extent possible, residential evictions and foreclosures during the ongoing COVID–19 national emergency. SEC. 3. Response to Public Health Risks of Evictions and Foreclosures. (a) The Secretary of Health and Human Services and the Director of CDC shall consider wheth- er any measures temporarily halting residential evic- tions of any tenants for failure to pay rent are reason- ably necessary to prevent the further spread of COVID–19 from one State or possession into any other State or possession. (b) The Secretary of the Treasury and the Secretary of Housing and Urban Development shall identify any and all available Federal funds to provide temporary fi- nancial assistance to renters and homeowners who, as Page 2532 TITLE 15—COMMERCE AND TRADE § 9057 a result of the financial hardships caused by COVID–19, are struggling to meet their monthly rental or mort- gage obligations. (c) The Secretary of Housing and Urban Development shall take action, as appropriate and consistent with applicable law, to promote the ability of renters and homeowners to avoid eviction or foreclosure resulting from financial hardships caused by COVID–19. Such ac- tion may include encouraging and providing assistance to public housing authorities, affordable housing own- ers, landlords, and recipients of Federal grant funds in minimizing evictions and foreclosures. (d) In consultation with the Secretary of the Treas- ury, the Director of FHFA shall review all existing au- thorities and resources that may be used to prevent evictions and foreclosures for renters and homeowners resulting from hardships caused by COVID–19. SEC. 4. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive de- partment or agency, or the head thereof; or (ii) the functions of the Director of the Office of Man- agement and Budget relating to budgetary, administra- tive, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appro- priations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforce- able at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. DONALD J. TRUMP. § 9057. Forbearance of residential mortgage loan payments for multifamily properties with Federally backed loans (a) In general During the covered period, a multifamily bor- rower with a Federally backed multifamily mortgage loan experiencing a financial hardship due, directly or indirectly, to the COVID–19 emergency may request a forbearance under the terms set forth in this section. (b) Request for relief A multifamily borrower with a Federally backed multifamily mortgage loan that was cur- rent on its payments as of February 1, 2020, may submit an oral or written request for forbear- ance under subsection (a) to the borrower’s servicer affirming that the multifamily bor- rower is experiencing a financial hardship dur- ing the COVID–19 emergency. (c) Forbearance period (1) In general Upon receipt of an oral or written request for forbearance from a multifamily borrower, a servicer shall— (A) document the financial hardship; (B) provide the forbearance for up to 30 days; and (C) extend the forbearance for up to 2 addi- tional 30 day periods upon the request of the borrower provided that, the borrower’s re- quest for an extension is made during the covered period, and, at least 15 days prior to the end of the forbearance period described under subparagraph (B). (2) Right to discontinue A multifamily borrower shall have the op- tion to discontinue the forbearance at any time. (d) Renter protections during forbearance period A multifamily borrower that receives a for- bearance under this section may not, for the du- ration of the forbearance— (1) evict or initiate the eviction of a tenant from a dwelling unit located in or on the ap- plicable property solely for nonpayment of rent or other fees or charges; or (2) charge any late fees, penalties, or other charges to a tenant described in paragraph (1) for late payment of rent. (e) Notice A multifamily borrower that receives a for- bearance under this section— (1) may not require a tenant to vacate a dwelling unit located in or on the applicable property before the date that is 30 days after the date on which the borrower provides the tenant with a notice to vacate; and (2) may not issue a notice to vacate under paragraph (1) until after the expiration of the forbearance. (f) Definitions In this section: (1) Applicable property The term ‘‘applicable property’’, with re- spect to a Federally backed multifamily mort- gage loan, means the residential multifamily property against which the mortgage loan is secured by a lien. (2) Federally backed multifamily mortgage loan The term ‘‘Federally backed multifamily mortgage loan’’ includes any loan (other than temporary financing such as a construction loan) that— (A) is secured by a first or subordinate lien on residential multifamily real property de- signed principally for the occupancy of 5 or more families, including any such secured loan, the proceeds of which are used to pre- pay or pay off an existing loan secured by the same property; and (B) is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by any officer or agency of the Federal Government or under or in connection with a housing or urban development program ad- ministered by the Secretary of Housing and Urban Development or a housing or related program administered by any other such of- ficer or agency, or is purchased or securitized by the Federal Home Loan Mort- gage Corporation or the Federal National Mortgage Association. (3) Multifamily borrower the term ‘‘multifamily borrower’’ means a borrower of a residential mortgage loan that is secured by a lien against a property com- prising 5 or more dwelling units. (4) COVID–19 emergency The term ‘‘COVID–19 emergency’’ means the national emergency concerning the novel coronavirus disease (COVID–19) outbreak de- clared by the President on March 13, 2020 under the National Emergencies Act (50 U.S.C. 1601 et seq.).