To require the holder of a subordinate lien on the property that secures a federally related mortgage loan, upon a request by the homeowner for a short sale, to make a timely decision whether to allow the sale.

Summary: Fast Help For Homeowners Act - Amends the Truth in Lending Act to require the servicer of a federally related mortgage, upon request by the mortgagor for a short sale of the dwelling or residential real property under the mortgage, to notify in writing each holder of a subordinate lien on the property securing the loan of such request, together with a copy of it.

Requires a subordinate lien holder that is so notified to respond in writing to the servicer within 45 days after receiving the notification. Considers the request approved by the holder if the holder does not respond within the 45 days.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fast Help For Homeowners Act''.

SEC. 2. REQUIREMENT FOR PROMPT DECISION.

    (a) In General.--Chapter 2 of the Truth in Lending Act (15 U.S.C. 
1631 et seq.) is amended by inserting before section 130 (15 U.S.C. 
1640) the following new section:

``SEC. 129I. PROMPT DECISION MAKING REGARDING SHORT SALE.

    ``(a) In General.--Not later than the end of the 10-calendar day 
period beginning on the date of receipt of a written request from a 
mortgagor of a federally related mortgage loan that meets the 
requirements of subsection (c), a servicer shall--
            ``(1) notify in writing each holder of a subordinate lien 
        on the residential real property that secures such loan of such 
        request; and
            ``(2) submit to each such holder a copy of such request.
    ``(b) Timely Response to Servicer Notification Required.--
            ``(1) In general.--
                    ``(A) Timely response required.--Except as provided 
                in subsection (d) and notwithstanding any other 
                provision of law or of any contract, including a 
                contract between a servicer of a federally related 
                mortgage loan and a securitization vehicle or other 
                investment vehicle, a holder of a subordinate lien that 
                is notified by a servicer under subsection (a) shall 
                respond in writing to such servicer not later than the 
                end of the 45-calendar day period beginning on the date 
                of receipt of such notification.
                    ``(B) Failure to respond.--If the holder of a 
                subordinate lien that is notified by a servicer under 
                subsection (a) does not respond within the 45-calendar 
                day period described in subparagraph (A), the request 
                from a mortgagor described in subsection (a) shall be 
                considered to have been approved by the such holder.
            ``(2) Content.--A written response by such holder under 
        subsection (a) shall specify a decision on whether the request 
        described in such subsection has been denied, approved, or that 
        such request has been approved subject to specified changes.
    ``(c) Mortgagor Submission.--Subsection (a) shall apply in any case 
in which the mortgagor of a federally related mortgage loan submits to 
the servicer thereof--
            ``(1) a written offer for a short sale of the dwelling or 
        residential real property that is subject to a mortgage, deed 
        of trust, or other security interest that secures the mortgage 
        loan; and
            ``(2) 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).
    ``(d) Inapplicability to Certain Existing Mortgages.--This section 
shall not apply to any federally related mortgage loan 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 Short Sales 
Taking A New Direction Act explicitly providing a procedure or terms 
for approval of a short sale.
    ``(e) 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 (b) for a decision to be made by a holder 
of a subordinate lien described in subsection (a)(1) regarding a short 
sale.
    ``(f) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Federally related mortgage loan.--The term `federally 
        related mortgage loan' has the same meaning as is given in 
        section 3 of the Real Estate Settlement Procedures Act of 1974 
        (12 U.S.C. 2602).
            ``(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 federally related 
        mortgage loans (or instruments that are related to federally 
        related mortgage loans, such as credit-linked notes).
            ``(3) Servicer.--The term `servicer' has the same meaning 
        as in section 129A, except that such term includes a person who 
        makes or holds a federally related mortgage loan (including a 
        pool of federally related 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 federally related 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) shall 
apply to any written request for a short sale made after the date of 
the enactment of this Act.