Federal Worker Mortgage Forbearance Act
Summary
The Federal Worker Mortgage Forbearance Act aims to provide federal employees and certain contractors with the ability to request mortgage forbearance during government shutdowns. This forbearance applies to federally backed mortgage loans and lasts for 90 days. The bill also includes provisions to protect the credit scores of those who receive forbearance.
Expected Effects
The act would allow affected federal workers to temporarily suspend mortgage payments without penalty during a lapse in appropriations. This would provide financial relief and prevent potential foreclosures. It also mandates agencies to notify employees of their rights under this act.
Potential Benefits
- Provides financial relief to federal employees and contractors during government shutdowns.
- Prevents potential foreclosures and negative impacts on credit scores.
- Ensures that no additional fees, penalties, or interest accrue during the forbearance period.
- Requires agencies to inform employees of their rights under the act.
- Protects borrowers from being required to make a lump-sum payment after the forbearance period.
Potential Disadvantages
- Could potentially increase the risk for mortgage servicers and lenders.
- May create additional administrative burden for agencies and servicers.
- The act does not grant forgiveness, so the mortgage still needs to be repaid.
- Potential for abuse through false statements in forbearance requests, although penalties are included.
- The 180-day covered period might not be sufficient for all affected individuals.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to legislate in ways that promote the economic stability and well-being of its citizens, particularly federal employees. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).