Mortgage Firms at Risk of Multibillion-Dollar Hit in Senate Bill

Mortgage companies could be forced to bear billions of dollars in costs under a Senate stimulus bill that allows some homeowners to postpone their monthly mortgage payments.

The legislation, which still faces hurdles before becoming law, proposes that households experiencing job losses or drops in income because of government-induced shutdowns shouldn’t lose their homes as a result.

The bill says little about who will finance what’s expected to be a widespread payment holiday for affected homeowners. With little expectation in Washington that mortgage holders will forgo billions of dollars in promised payments, the financial industry fears that companies that collect ...