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119-s-3156119th CongressWALLET

Federal Worker Mortgage Forbearance Act

Sponsored By: Senator Alsobrooks, Angela D. [D-MD]

Introduced

Summary

Creates temporary forbearance rights for federally backed mortgage borrowers during federal funding lapses. It would let eligible federal employees, certain contractors, and emergency workers pause mortgage payments and avoid extra fees while a lapse and a short aftermath persist.

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  • Covered individuals include federal employees, excepted employees, emergency workers, and contractors who stop work and are not paid basic pay. Borrowers can request forbearance by affirming hardship, servicers must grant 90 days, and the covered period runs from the lapse until 180 days after it ends.
  • During forbearance no fees, penalties, or additional interest may accrue beyond what would have occurred with timely payments. After forbearance servicers may not demand a lump-sum payment and the measure specifies that forbearance is not loan forgiveness.
  • The bill adds an "accommodation" reporting category to the Fair Credit Reporting Act so furnishers report covered loans as current or maintain delinquency, with an exception for charged-off accounts. It creates criminal penalties for false statements, requires agencies to notify eligible people within 10 days of a lapse, and is written to be effective retroactively to Sept. 30, 2025.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

90-Day Mortgage Pause for Federal Workers

If enacted, covered federal employees and some contractors could request a 90-day mortgage forbearance during a lapse in appropriations. You would need to submit a request to your servicer and say the lapse caused financial hardship. During the pause, servicers could not add fees, penalties, or extra interest beyond what would have been charged if payments were on time. Servicers could not demand a lump-sum catch-up payment when the pause ends. The covered period runs from the lapse start and ends 180 days after the lapse ends. Agencies would have to notify affected workers within 10 days. The change would take effect as if enacted on September 30, 2025. Knowingly lying on a request could lead to criminal penalties under 18 U.S.C. 1014.

Credit Reporting for Forbearance Accommodations

If enacted, furnishers would have to report accounts under a forbearance accommodation either as current when payments are made or not required, or keep prior delinquency but update to current if you bring the account current during the accommodation. The rule would not apply to charged-off accounts. This change would take effect as if enacted on September 30, 2025.

Sponsors & CoSponsors

Sponsor

Alsobrooks, Angela D. [D-MD]

MD • D

Cosponsors

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 11/7/2025

  • Sen. Kaine, Tim [D-VA]

    VA • D

    Sponsored 11/7/2025

  • Sen. Warner, Mark R. [D-VA]

    VA • D

    Sponsored 11/7/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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