Prompt Decision for Qualification of Short Sale Act of 2010 - Amends the Truth in Lending Act to consider approved a mortgagor's written request to a mortgage loan servicer for a short sale of a dwelling or residential real property if the mortgagor has not received, within 45 days after the servicer's receipt of the request, a written notification of whether the request has been approved, specified changes are required, or additional information is required.
Declares this Act inapplicable to certain residential mortgages entered into before enactment of this Act which explicitly provide a procedure or terms for a short sale approval.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6133 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 6133
To require the lender or servicer of a home mortgage, upon a request by
the homeowner for a short sale, to make a prompt decision whether to
allow the sale.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 15, 2010
Mr. Andrews (for himself and Mr. Rooney) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To require the lender or servicer of a home mortgage, upon a request by
the homeowner for a short sale, to make a prompt decision whether to
allow the sale.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Prompt Decision for Qualification of
Short Sale Act of 2010''.
SEC. 2. PROMPT DECISION REGARDING SHORT SALE.
(a) In General.--Chapter 2 of the Truth in Lending Act (15 U.S.C.
1631 et seq.) is amended--
(1) by redesignating the second section 129, as added by
section 201(b) of the Helping Families Save Their Homes Act of
2009 (Public Law 111-22; 123 Stat. 1638), as section 129A; and
(2) by inserting before section 130 (15 U.S.C. 1640) the
following new section:
``SEC. 129B. PROMPT DECISION REGARDING SHORT SALE.
``(a) Requirement.--Except as provided in subsection (b) and
notwithstanding any other provision of law or of any contract,
including a contract between a servicer of a residential mortgage loan
and a securitization vehicle or other investment vehicle, if the
mortgagor under a residential mortgage loan submits to the servicer of
the mortgage loan a written request for a short sale of the dwelling or
residential real property that is subject to the mortgage, deed or
trust, or other security interest that secures the mortgage loan, and
all information required by the servicer in connection with such a
request (including a copy of an executed contract between the owner of
the dwelling or property and the prospective buyer that is subject to
approval by the servicer), and the mortgagor does not receive from the
servicer, before the expiration of the 45-day period beginning upon
receipt by the servicer of such request and information, a written
notification of whether such request has been approved, that such
request has been approved subject to specified changes, or that
additional information is required for such a determination, such
request shall be considered to have been approved by the servicer.
``(b) Inapplicability to Certain Existing Mortgages.--Subsection
(a) shall not apply with respect to any residential mortgage with
respect to which the mortgagor and the mortgagee or servicer have
entered into a written agreement before the date of the enactment of
the Prompt Decision for Qualification of Short Sale Act of 2010
explicitly providing a procedure or terms for approval of a short sale.
``(c) Treatment of Other Time Limits.--This section may not be
construed to preempt, annul, or otherwise affect any other provision of
law or of any contract or program that provides a shorter period than
is provided under subsection (a) for a decision by the servicer of a
residential mortgage loan regarding a short sale of the dwelling or
residential real property that is subject to the mortgage, deed or
trust, or other security interest that secures the mortgage loan.
``(d) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Residential mortgage loan.--The term `residential
mortgage loan' means any consumer credit transaction that is
secured by a mortgage, deed of trust, or other equivalent
consensual security interest on a dwelling or on residential
real property that includes a dwelling, other than a consumer
credit transaction under an open end credit plan or an
extension of credit relating to a plan described in section
101(53D) of title 11, United States Code.
``(2) Securitization vehicle.--The term `securitization
vehicle' means a trust, special purpose entity, or other legal
structure that is used to facilitate the issuing of securities,
participation certificates, or similar instruments backed by or
referring to a pool of assets that includes residential
mortgage loans (or instruments that are related to residential
mortgage loans, such as credit-linked notes).
``(3) Servicer.--The term `servicer' has the meaning
provided in section 129A, except that such term includes a
person who makes or holds a residential mortgage loan
(including a pool of residential mortgage loans) if such person
also services the loan.
``(4) Short sale.--The term `short sale' means the sale of
the dwelling or residential real property that is subject to
the mortgage, deed or trust, or other security interest that
secures a residential mortgage loan that--
``(A) will result in proceeds in an amount that is
less than the remaining amount due under the mortgage
loan; and
``(B) requires authorization by the securitization
vehicle or other investment vehicle or holder of the
mortgage loan, or the servicer acting on behalf of such
a vehicle or holder.''.
(b) Applicability.--The amendment made by subsection (a) of this
section shall apply to any written request for a short sale made after
the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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