Sens. Adam Schiff and Michael Bennet have introduced the Mortgage Relief for Disaster Survivors Act, legislation that would grant homeowners in areas that have received disaster declarations from the President, Governors, or Tribal leaders 180 days of mortgage forbearance to support household recovery, along with an option of a 180-day extension without accumulation of interest or penalties.
The Mortgage Relief for Disaster Survivors Act would provide mortgage relief for disaster survivors across the country, helping alleviate financial hardships. Anyone residing in an area that has received a disaster declaration from any of the authorities described above from January 1, 2025, would be eligible to request forbearance.
“Earlier this year, we watched as families in Los Angeles were devastated by wildfires, and to date, many homeowners are still struggling to rebuild from this disaster,” said Sen. Schiff. “I am proud to introduce this bill so that those who have been affected by natural disasters receive the assistance they need when they need it the most. As natural disasters become more frequent due to climate change, it is critical that we pave a path to stability for homeowners in times of crisis. This is an issue that impacts both red and blue states alike, and I’ll push hard to ensure Congress passes this legislation.”
Fires erupted in the Palisades region of Los Angeles County the morning of January 7, a Los Angeles neighborhood east of Malibu, as a brush fire, spreading across 23,448 acres, according to the California Department of Forestry and Fire Protection (Cal Fire), causing damage to more than 6,800 structures. The Eaton Fire, igniting just hours after the Palisades Fire near a canyon north of downtown Los Angeles, spread across approximately 14,021 acres, damaging nearly 10,500 structures in its path.
According to William Yu, Economist for the UCLA Anderson Forecast, the estimated economic impact of the Los Angeles County wildfires was far more reaching than just the housing market. Total estimated property and capital losses could range between $76 billion and $131 billion, with insured losses estimated up to $45 billion. The region also experienced a 0.48% decline in county-level Gross Domestic Product (GDP) for 2025, amounting to approximately $4.6 billion, along with a total wage loss of $297 million for local businesses and employees in the affected areas.
Sen. Schiff previously led legislation aimed at supporting those impacted by the Los Angeles wildfires and natural disasters across the country. In April 2025, Schiff was joined by Sen. Tim Sheehy of Montana in introducing the bipartisan Facilitating Increased Resilience, Environmental Weatherization and Lowered Liability (FIREWALL) Act to promote community resilience to natural disasters through a new federal tax credit. Additionally, the Senator introduced the Incorporating National Support for Unprecedented Risks and Emergency (INSURE) Act in June 2025 to stabilize the home insurance market through the creation of a federal catastrophic reinsurance program, keeping insurance premiums affordable for those in disaster-prone states.
“After a natural disaster, survivors often have many extra expenses for temporary relocation and basic needs, and may also be facing job loss or medical bills,” said Alys Cohen, Director of Federal Housing Advocacy, National Consumer Law Center (NCLC) about the Mortgage Relief for Disaster Survivors Act. “This bill will ensure that disaster survivors can begin rebuilding their lives before they are required to resume making mortgage payments if they are unable to do so at the outset.”
Further residual damage from natural disasters has been felt by California homeowners as the Golden State, for example, is in the midst of an insurance crisis, as property coverage options have decreased, and in some cases, disappeared altogether. Several insurance companies have either fled California, stopped writing new policies or have reduced their exposure, citing business risks amid rising replacement costs and the inability to adequately raise premiums.
Fox Business recently provided a list of carriers who have vacated the state or have drastically scaled back offerings for homeowners. Allstate, American National, AmGUARD, Chubb, Farmers Insurance Group, Nationwide, State Farm, The Hartford Financial Services Group, and Travelers, were just a few of the nation’s major providers that have paused sales of new home insurance policies or stopped offering homeowners insurance in the California market altogether.
U.S. Reps. Judy Chu and Brad Sherman have introduced companion legislation in the U.S. House of Representatives, HR 2928, the Mortgage Relief for Disaster Survivors Act, which would provide homeowners in presidentially declared disaster areas who have a federally backed mortgage with 180 days of mortgage forbearance, with the option of extending for an additional 180 days and without any interest, penalties, or fees accruing.
“Disasters don’t just destroy homes—they deepen the financial hardship for the lowest income families who were already struggling to make ends meet. By enacting the Mortgage Relief for Disaster Survivors Act, Congress can ensure that impacted low-income homeowners can pause their payments while they recover, preventing displacement and ensuring families can stay in their communities after disasters strike,” said Renee Willis, President and CEO of the National Low Income Housing Coalition.
Click here for more on the Mortgage Relief for Disaster Survivors Act.
