II 

117TH CONGRESS 

2D SESSION S. 5342 

To provide requirements for the bulk auction or group sale of certain nonperforming loans, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 21, 2022 

Mr. REED (for himself, Mr. BROWN, Mr. WYDEN, and Ms. SMITH) introduced 

the following bill; which was read twice and referred to the Committee 

on Banking, Housing, and Urban Affairs 

A BILL 

To provide requirements for the bulk auction or group sale 

of certain non-performing loans, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Preserving Homes and 

5 Communities Act of 2022’’. 

6 SEC. 2. SALE OF FHA NON-PERFORMING SINGLE FAMILY 

7 MORTGAGE LOANS. 

8 (a) IN GENERAL.—Title II of the National Housing 

9 Act (12 U.S.C. 1707 et seq.) is amended by adding at 

10 the end the following: 


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1 ‘‘SEC. 259. SALE OF NON-PERFORMING SINGLE FAMILY 

2 MORTGAGE LOANS. 

3 ‘‘(a) SINGLE FAMILY SALES.—The Secretary may 

4 conduct sales of 1 or more of single family non-performing 

5 residential mortgage loans insured under this title only if 

6 the following requirements are met: 

7 ‘‘(1) The Secretary determines that no other 

8 reasonable measures other than a sale are available 

9 to restore the Fund to, or keep the Fund above, the 

10 minimum capital requirements under section 

11 205(f)(4). 

12 ‘‘(2) The Secretary establishes a system that 

13 provides priority to Federal, State, local, or Tribal 

14 governments or nonprofit organizations that have 

15 the capacity and experience required for buying, 

16 servicing, and resolving single family mortgage loans 

17 in a manner that promotes affordable housing, fair 

18 housing, affordable homeownership, housing coun19 seling, or neighborhood stabilization. 

20 ‘‘(3) Applicable loss mitigation required under 

21 section 230 is exhausted before any loan is placed 

22 into the loan sale. 

23 ‘‘(4) Clear, written notice is sent by certified 

24 and first-class mail by the servicer to the borrower 

25 of the loan, all owners of record, and any applicable 

26 estate of the borrower with a copy sent to the SecVerDate Sep 11 2014 23:56 Jan 07, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S5342.IS S5342

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1 retary, not less than 90 days before the inclusion of 

2 the loan in any single family sale— 

3 ‘‘(A) stating that the loan will be included 

4 in a single family sale of non-performing loans; 

5 and 

6 ‘‘(B) describing the sale process, includ7 ing— 

8 ‘‘(i) the loss mitigation or other pro9 tections available to the borrower and 

10 other owners of record both before and 

11 after the sale; 

12 ‘‘(ii) the status of any loss mitigation 

13 actions offered by the mortgagee with re14 spect to the loan, including decisions on all 

15 loss mitigation reviews, descriptions of any 

16 loss mitigation options offered or denied, 

17 and supporting documentation for the 

18 most recent evaluation; and 

19 ‘‘(iii) the obligations of the servicer of 

20 the loan before and after the sale, includ21 ing loss mitigation requirements. 

22 ‘‘(5) Purchasers take loans subject to the fol23 lowing requirements: 

24 ‘‘(A) The provision of loss mitigation op25 tions to all eligible borrowers that offer terms 


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1 and protections at least as favorable as those 

2 available under loss mitigation guidelines of the 

3 Federal Housing Administration, including the 

4 absence of fees for loss mitigation and loan 

5 modifications that reduce payments to an af6 fordable level. 

7 ‘‘(B) Written, public disclosure of post-sale 

8 loss mitigation options. 

9 ‘‘(C) Failure by the purchaser to follow the 

10 established loss mitigation guidelines shall serve 

11 as a defense to a judicial foreclosure and a 

12 basis to enjoin or otherwise stay a non-judicial 

13 foreclosure. 

14 ‘‘(D) Data reporting as provided under 

15 subsection (c)(1). 

16 ‘‘(E) Maintenance of vacant and aban17 doned property, including the payment of local 

18 property taxes, until such time as title is trans19 ferred to a nonprofit organization or the prop20 erty is sold to a bona fide third-party pur21 chaser. 

22 ‘‘(F) Where a property becomes vacant, 

23 the purchaser shall not release the lien until the 

24 property is sold or donated. 


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1 ‘‘(G) Use of contract for deed, lease to 

2 own, or a land installment contract to sell or 

3 otherwise transfer any property that is secured 

4 by a purchased loan shall be prohibited unless 

5 the tenant or purchaser is a nonprofit organiza6 tion. 

7 ‘‘(H) For all non-performing loans where a 

8 home retention loss mitigation option is not 

9 possible and the purchaser acquires the prop10 erty through foreclosure sale, 75 percent of 

11 those properties shall be— 

12 ‘‘(i) sold at the current fair market 

13 value to an owner occupant; 

14 ‘‘(ii) sold or donated to a nonprofit or 

15 local government entity that will commit to 

16 1 of the outcomes described in clause (i) or 

17 (iii); 

18 ‘‘(iii) for not less than the 10-year pe19 riod beginning on the date on which any 

20 entity initially leases the property, and 

21 with respect to any new lease beginning 

22 within such 10-year period, leased to a ten23 ant with income that is not more than 100 

24 percent of the area median income at the 

25 time the tenant initially leases the propVerDate Sep 11 2014 23:56 Jan 07, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S5342.IS S5342

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1 erty, with monthly rents that are not more 

2 than 30 percent of the monthly household 

3 income, provided that the property owner 

4 accepts as rental payment any legal source 

5 of income, including— 

6 ‘‘(I) a housing voucher under sec7 tion 8 of the United States Housing 

8 Act of 1937 (42 U.S.C. 1437f) and 

9 any form of Federal, State, or local 

10 housing assistance provided to a per11 son or family or provided to a housing 

12 owner on behalf of a person or family, 

13 including— 

14 ‘‘(aa) rental vouchers; 

15 ‘‘(bb) rental assistance; 

16 ‘‘(cc) rental subsidies from 

17 nongovernmental organizations; 

18 and 

19 ‘‘(dd) homeownership sub20 sidies; 

21 ‘‘(II) income received as a 

22 monthly benefit under title II of the 

23 Social Security Act (42 U.S.C. 401 et 

24 seq.), as a supplemental security in25 come benefit under title XVI of the 


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1 Social Security Act (42 U.S.C. 1381 

2 et seq.), or as a benefit under the 

3 Railroad Retirement Act of 1974 (45 

4 U.S.C. 231 et seq.), including any 

5 such benefit to which the individual is 

6 entitled for which payment is made to 

7 a representative payee; 

8 ‘‘(III) income received by court 

9 order, including spousal support and 

10 child support; 

11 ‘‘(IV) any payment from a trust, 

12 guardian, conservator, cosigner, or 

13 relative; and 

14 ‘‘(V) any other lawful source of 

15 income or funds, including savings ac16 counts and investments; or 

17 ‘‘(iv) for any property that is not hab18 itable, demolished or donated to a land 

19 bank with a cash donation to cover demoli20 tion costs. 

21 ‘‘(b) DIRECT LOAN SALES.—The Secretary may per22 mit direct loan sales of single family non-performing resi23 dential loans insured under this title only if— 

24 ‘‘(1) the loans are sold to municipalities, land 

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1 fordable housing, housing counseling, or neighbor2 hood stabilization; 

3 ‘‘(2) the purchaser complies with the require4 ments under paragraph (5) of subsection (a); and 

5 ‘‘(3) the pricing reasonably reflects the costs of 

6 complying with the requirements under paragraphs 

7 (3) through (5) of subsection (a). 

8 ‘‘(c) DATA AND REPORTING.— 

9 ‘‘(1) PURCHASER REPORTING.—During the 4- 

10 year period following any single family sale of non11 performing residential single family mortgage loans 

12 under subsection (a) or (b), the Secretary shall re13 quire each purchaser of such a loan, including any 

14 subsequent purchaser of the loan, to provide to the 

15 Secretary quarterly loan-level data regarding the 

16 treatment and outcome of the loan, including— 

17 ‘‘(A) loan characteristics, including loan 

18 type, remaining loan term, loan to value ratio, 

19 number of months in arrears, loss mitigation 

20 status, and foreclosure status at time of sale; 

21 ‘‘(B) loss mitigation data, including wheth22 er loss mitigation was provided by the pur23 chaser, debt-to-income ratio and percent pay24 ment reduction for any modified loans, foreVerDate Sep 11 2014 23:56 Jan 07, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S5342.IS S5342

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1 closures begun or completed, and performance 

2 of modified loans; 

3 ‘‘(C) demographic data for the borrower 

4 and any co-borrower, including race, national 

5 origin, sex, ZIP Code, and census tract, and, if 

6 available, disability status and veteran status; 

7 and 

8 ‘‘(D) other purchaser actions, including 

9 charge offs and resales of loans and dates for 

10 such actions. 

11 ‘‘(2) SEMIANNUAL REPORTS TO CONGRESS.— 

12 The Secretary shall submit to Congress, and make 

13 publicly available at no cost to the public in a format 

14 that is readily accessible on the website of the De15 partment of Housing and Urban Development, semi16 annual reports to Congress on— 

17 ‘‘(A) loans sold in a single family sale 

18 under subsection (a), disaggregated by pool, in19 cluding— 

20 ‘‘(i) the number of loans and types of 

21 loans; 

22 ‘‘(ii) mean and median delinquency 

23 and loan to value ratios at the time of the 

24 sale; 


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1 ‘‘(iii) the number and percentage of 

2 owner-occupied properties; 

3 ‘‘(iv) the number and percentage of 

4 loans modified prior to the sale; 

5 ‘‘(v) the number and percentage of 

6 loans in foreclosure proceedings at the 

7 time of the sale; and 

8 ‘‘(vi) demographic and geographic 

9 data, including property locations by cen10 sus tract or larger geographic location if 

11 necessary to protect personally identifiable 

12 information; 

13 ‘‘(B) the performance of loans after a sin14 gle family sale under subsection (a), 

15 disaggregated by loan pool, including the initial 

16 purchaser, current owner, current servicer, data 

17 summarizing any alternatives to foreclosure of18 fered and enacted, and data summarizing the 

19 data collected under paragraph (1); 

20 ‘‘(C) the results of a fair lending analysis 

21 conducted based on the data in paragraph (1) 

22 to identify any discriminatory impacts or out23 comes associated with the sales; and 

24 ‘‘(D) claims paid through the Claims With25 out Conveyance of Title program under section 


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1 204(a)(1)(C), including the number of third2 party sales by ZIP Code, whether purchasers 

3 are owner-occupants, nonprofit organizations, 

4 government entities, or investors, and the 

5 source of funds or financing used by pur6 chasers. 

7 ‘‘(d) PENALTIES FOR NONCOMPLIANCE.—The Sec8 retary may— 

9 ‘‘(1) forcibly retain loans or properties, without 

10 providing compensation, from purchasers that do not 

11 meet the requirements under subsection (a)(5); and 

12 ‘‘(2) enact additional penalties for purchasers 

13 described in paragraph (1) that the Secretary deter14 mines have repeatedly not complied with the require15 ments under subsection (a)(5), including monetary 

16 penalties and prohibition from participating in single 

17 family sales under this section. 

18 ‘‘(e) REGULATIONS.—The Secretary shall issue regu19 lations related to single family sales in accordance with 

20 the requirements in this section. 

21 ‘‘SEC. 260. CLAIMS WITHOUT CONVEYANCE OF TITLE FIRST 

22 LOOK PROGRAM. 

23 ‘‘(a) CLAIMS WITHOUT CONVEYANCE OF TITLE

24 FIRST LOOK PROGRAM.—With respect to a third-party 

25 sale of properties foreclosed upon and put up for sale in 


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1 accordance with section 204(a)(1)(C), the Secretary shall 

2 maintain an exclusive right for eligible buyers to purchase 

3 these properties at a price at or below the fair market 

4 value of the property (with appropriate adjustments) for 

5 a specified period of time at the start of post-foreclosure 

6 sale efforts. 

7 ‘‘(b) ELIGIBLE BUYERS.—The right to purchase a 

8 property under subsection (a) shall be offered to— 

9 ‘‘(1) homebuyers who will occupy the property 

10 as a principal residence; 

11 ‘‘(2) nonprofit organizations that— 

12 ‘‘(A) commit in advance to rehabilitate the 

13 property and dispose of the property for an al14 lowable use and within a time period to be des15 ignated by the Secretary by regulation; and 

16 ‘‘(B) are pre-approved for participation by 

17 the Secretary or a designee thereof to ensure 

18 that the organization— 

19 ‘‘(i) maintains active tax-exempt sta20 tus under section 501(c)(3) of the Internal 

21 Revenue Code; 

22 ‘‘(ii) has a primary mission related 

23 to— 

24 ‘‘(I) affordable housing; or 


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1 ‘‘(II) community revitalization 

2 through housing-related activities; and 

3 ‘‘(iii) has demonstrated not less than 

4 2 years of direct experience with real es5 tate project development as an organiza6 tional entity; and 

7 ‘‘(3) Federal, State, local, or Tribal government 

8 agencies or instrumentalities that meet the require9 ments of subparagraph (A) and clauses (ii) and (iii) 

10 of subparagraph (B) of paragraph (2). 

11 ‘‘(c) ALLOWABLE USES.—An allowable use described 

12 in this subsection shall include— 

13 ‘‘(1) renovation and sale, or, if the property al14 ready meets the minimum property standards set by 

15 the Assistant Secretary for Housing and Federal 

16 Housing Commissioner, sale without renovation, to 

17 an owner-occupant with an income that is not more 

18 than 120 percent of the area median income; 

19 ‘‘(2) renovation and creation of affordable 

20 homeownership or, if the property already meets the 

21 minimum property standards set by the Assistant 

22 Secretary for Housing and Federal Housing Com23 missioner, creation of affordable homeownership 

24 without renovation, by a community land trust or 

25 shared equity homeownership program; 


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1 ‘‘(3) renovation and rental to tenants with an 

2 income that is not more than 100 percent of the 

3 area median income at the time the tenant initially 

4 leases the property, with monthly rents that are not 

5 more than 30 percent of the monthly household in6 come, for not less than the 10-year period beginning 

7 on the date on which any entity initially leases the 

8 property, and with respect to any new lease begin9 ning within such 10-year period, provided that the 

10 property owner accepts as rental payment any legal 

11 source of income, including— 

12 ‘‘(A) a housing voucher under section 8 of 

13 the United States Housing Act of 1937 (42 

14 U.S.C. 1437f) and any form of Federal, State, 

15 or local housing assistance provided to a person 

16 or family or provided to a housing owner on be17 half of a person or family, including— 

18 ‘‘(i) rental vouchers; 

19 ‘‘(ii) rental assistance; 

20 ‘‘(iii) rental subsidies from nongovern21 mental organizations; and 

22 ‘‘(iv) homeownership subsidies; 

23 ‘‘(B) income received as a monthly benefit 

24 under title II of the Social Security Act (42 

25 U.S.C. 401 et seq.), as a supplemental security 


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1 income benefit under title XVI of the Social Se2 curity Act (42 U.S.C. 1381 et seq.), or as a 

3 benefit under the Railroad Retirement Act of 

4 1974 (45 U.S.C. 231 et seq.), including any 

5 such benefit to which the individual is entitled 

6 for which payment is made to a representative 

7 payee; 

8 ‘‘(C) income received by court order, in9 cluding spousal support and child support; 

10 ‘‘(D) any payment from a trust, guardian, 

11 conservator, cosigner, or relative; and 

12 ‘‘(E) any other lawful source of income or 

13 funds, including savings accounts and invest14 ments; and 

15 ‘‘(4) demolition, but only if the property is va16 cant or uninhabitable and if the demolition is part 

17 of a strategy that incorporates rehabilitation, new 

18 construction, or designation of the land for use as a 

19 public amenity. 

20 ‘‘(d) REPORTING REQUIREMENTS.— 

21 ‘‘(1) IN GENERAL.—Each purchaser of a prop22 erty under this section, other than an owner-occu23 pant, shall, on an annual basis until the purchaser 

24 completes the allowable use of the property under 

25 subsection (c), report to the Secretary— 


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1 ‘‘(A) the start date and completion date of 

2 any rehabilitation; 

3 ‘‘(B) the scope of work for and the total 

4 cost of any rehabilitation; 

5 ‘‘(C) the end-use of the property, including 

6 sale to owner-occupant, use in a land trust or 

7 other shared equity program, or affordable 

8 rental; 

9 ‘‘(D) the demographics of the end-user of 

10 the property, whether an owner-occupant or a 

11 tenant, including race, national origin, sex, ZIP 

12 Code, and census tract, and, if available, dis13 ability status and veteran status; and 

14 ‘‘(E) the approximate income of the end15 user of the property expressed as a percentage 

16 of the area median income. 

17 ‘‘(2) AVAILABILITY.—The Secretary shall, on 

18 an annual basis, make the information collected 

19 under paragraph (1) publicly available at no cost to 

20 the public in a readily accessible format on the 

21 website of the Department of Housing and Urban 

22 Development. 

23 ‘‘(e) USE OF THIRD-PARTY VENDORS.—The Sec24 retary may contract with a third-party vendor to assist 


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1 in carrying out the provisions of this section, including 

2 to— 

3 ‘‘(1) pre-approve nonprofit organizations for 

4 participation in the Claims Without Conveyance of 

5 Title First Look program; 

6 ‘‘(2) monitor compliance with allowable uses 

7 and time periods designated by the Secretary by reg8 ulation; and 

9 ‘‘(3) facilitate reporting to the Secretary. 

10 ‘‘(f) ACCESS.—The Secretary shall ensure that any 

11 eligible buyer seeking to purchase a property under this 

12 section can easily access and inspect the property prior 

13 to making a commitment to purchase the property.’’. 

14 (b) REGULATIONS.—Not later than 18 months after 

15 the date of enactment of this Act, the Secretary of Hous16 ing and Urban Development shall promulgate regulations 

17 to carry out the amendments made by this section. 

18 SEC. 3. SALE OF FANNIE MAE AND FREDDIE MAC NON-PER19 FORMING LOANS. 

20 The Federal Housing Enterprises Financial Safety 

21 and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is 

22 amended by inserting after section 1328 (12 U.S.C. 4548) 

23 the following: 


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1 ‘‘SEC. 1329. SALE OF NON-PERFORMING LOANS. 

2 ‘‘(a) BULK AUCTION OR GROUP SALES.—An enter3 prise may not conduct bulk auctions or other group sales 

4 of single family non-performing residential loans unless 

5 the following requirements are met: 

6 ‘‘(1) The enterprise establishes a system that 

7 provides priority to Federal, State, local, or Tribal 

8 governments or nonprofit organizations that have 

9 the capacity and experience required for buying, 

10 servicing, and resolving single family mortgage loans 

11 in a manner that promotes affordable housing, fair 

12 housing, affordable homeownership, provision of 

13 housing counseling, or neighborhood stabilization. 

14 ‘‘(2) Applicable loss mitigation is exhausted be15 fore a loan may be placed into the bulk auction or 

16 group sale. 

17 ‘‘(3) Clear, written notice is sent by the enter18 prise or servicer through certified and first-class 

19 mail to the borrower and all owners of record, with 

20 a copy sent to the enterprise if sent by the servicer, 

21 not less than 90 days before the inclusion of the 

22 loan in any proposed sale— 

23 ‘‘(A) stating that the loan will be included 

24 in a bulk auction or group sale of non-per25 forming loans; and 


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1 ‘‘(B) describing the bulk auction or group 

2 sale process, including— 

3 ‘‘(i) the loss mitigation or other pro4 tections available to the borrower and 

5 other owners of record both before and 

6 after the auction or sale; 

7 ‘‘(ii) the status of any loss mitigation 

8 actions offered by the mortgagee with re9 spect to the loan, including decisions on all 

10 loss mitigation reviews, descriptions of any 

11 loss mitigation options offered or denied, 

12 and supporting documentation for the 

13 most recent evaluation; and 

14 ‘‘(iii) the obligations of the servicer of 

15 the loan before and after the auction or 

16 sale, including loss mitigation require17 ments. 

18 ‘‘(4) The enterprise requires in the terms of the 

19 bulk auction or group sale that purchasers take 

20 loans subject to the following requirements: 

21 ‘‘(A) The purchaser is required to provide 

22 loss mitigation options to all eligible borrowers 

23 that offer terms and protections at least as fa24 vorable as those available under loss mitigation 

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1 sence of fees for loss mitigation and loan modi2 fications that reduce payments to an affordable 

3 level. 

4 ‘‘(B) The purchaser is required to provide 

5 written, public disclosure of post-sale loss miti6 gation options that the purchaser makes avail7 able to eligible borrowers. 

8 ‘‘(C) Failure by the purchaser to follow the 

9 established loss mitigation guidelines shall serve 

10 as a defense to a judicial foreclosure and a 

11 basis to enjoin or otherwise stay a non-judicial 

12 foreclosure. 

13 ‘‘(D) Data reporting as provided under 

14 subsection (b)(2). 

15 ‘‘(E) If a property becomes vacant, the 

16 purchaser shall not release the lien until the 

17 property is sold or donated. 

18 ‘‘(F) Use of contract for deed, lease to 

19 own, or a land installment contract to sell or 

20 otherwise transfer any property that is secured 

21 by a purchased loan shall be prohibited unless 

22 the tenant or purchaser is a nonprofit organiza23 tion without obtaining prior permission from 

24 the enterprise. 


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1 ‘‘(G) For all non-performing loans where a 

2 home-retention loss mitigation option is not 

3 possible and the purchaser acquires the prop4 erty through foreclosure sale, 75 percent of 

5 those properties shall be— 

6 ‘‘(i) sold at the current fair market 

7 value to an owner-occupant; 

8 ‘‘(ii) sold or donated to a nonprofit or 

9 local government entity that will commit to 

10 1 of the outcomes described in clause (i) or 

11 (iii); 

12 ‘‘(iii) for not less than the 10-year pe13 riod beginning on the date on which any 

14 entity initially leases the property, and 

15 with respect to any new lease beginning 

16 within such 10-year period, leased to a ten17 ant with an income that is not more than 

18 100 percent of the area median income at 

19 the time the tenant initially leases the 

20 property, with monthly rents that are not 

21 more than 30 percent of the monthly 

22 household income, provided that the prop23 erty owner accepts as rental payment any 

24 legal source of income, including— 


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1 ‘‘(I) a housing voucher under sec2 tion 8 of the United States Housing 

3 Act of 1937 (42 U.S.C. 1437f) and 

4 any form of Federal, State, or local 

5 housing assistance provided to a per6 son or family or provided to a housing 

7 owner on behalf of a person or family, 

8 including— 

9 ‘‘(aa) rental vouchers; 

10 ‘‘(bb) rental assistance; 

11 ‘‘(cc) rental subsidies from 

12 nongovernmental organizations; 

13 and 

14 ‘‘(dd) homeownership sub15 sidies; 

16 ‘‘(II) income received as a 

17 monthly benefit under title II of the 

18 Social Security Act (42 U.S.C. 401 et 

19 seq.), as a supplemental security in20 come benefit under title XVI of the 

21 Social Security Act (42 U.S.C. 1381 

22 et seq.), or as a benefit under the 

23 Railroad Retirement Act of 1974 (45 

24 U.S.C. 231 et seq.), including any 

25 such benefit to which the individual is 


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1 entitled for which payment is made to 

2 a representative payee; 

3 ‘‘(III) income received by court 

4 order, including spousal support and 

5 child support; 

6 ‘‘(IV) any payment from a trust, 

7 guardian, conservator, cosigner, or 

8 relative; and 

9 ‘‘(V) any other lawful source of 

10 income or funds, including savings ac11 counts and investments; or 

12 ‘‘(iv) for any property that is not hab13 itable, demolished or donated to a land 

14 bank with a cash donation to cover demoli15 tion costs. 

16 ‘‘(5) The enterprise maintains vacant and aban17 doned property until such time as title is transferred 

18 to a nonprofit organization or the property is sold to 

19 a bona fide third-party purchaser. 

20 ‘‘(b) DATA AND REPORTING.— 

21 ‘‘(1) PURCHASER REPORTING.—During the 4- 

22 year period following any auction or sale of single 

23 family non-performing residential mortgage loans 

24 under subsection (a), the Director shall require the 

25 enterprise to collect from each purchaser of such 


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1 loans, including any subsequent purchaser of a loan, 

2 quarterly loan-level data regarding the treatment 

3 and outcome of the loan, including— 

4 ‘‘(A) loan characteristics, including loan 

5 type, remaining loan term, loan to value ratio, 

6 number of months in arrears, loss mitigation 

7 status, and foreclosure status at time of sale; 

8 ‘‘(B) loss mitigation data, including wheth9 er loss mitigation was provided by the pur10 chaser, debt-to-income ratio and percent pay11 ment reduction for any modified loans, fore12 closures begun or completed, and performance 

13 of modified loans; 

14 ‘‘(C) demographic data for each borrower 

15 and any co-borrower, including race, national 

16 origin, sex, ZIP Code, and census tract, and, if 

17 available, disability status and veteran status; 

18 and 

19 ‘‘(D) other purchaser actions, including 

20 charge offs and resales of loans and dates for 

21 such actions. 

22 ‘‘(2) SEMIANNUAL REPORTS TO CONGRESS.— 

23 The Director shall submit to Congress, and make 

24 publicly available at no cost to the public in a readily 


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1 accessible format on the website of the Agency, 

2 semi-annual reports on— 

3 ‘‘(A) loans sold in an auction or sale under 

4 subsection (a) by each enterprise, disaggregated 

5 by pool, including— 

6 ‘‘(i) the number of loans and types of 

7 loans; 

8 ‘‘(ii) mean and median delinquency 

9 and loan to value ratios at the time of the 

10 sale; 

11 ‘‘(iii) the number and percentage of 

12 owner-occupied properties; 

13 ‘‘(iv) the number and percentage of 

14 loans modified prior to auction or sale; 

15 ‘‘(v) the number and percentage of 

16 loans in foreclosure proceedings at the 

17 time of auction or sale; and 

18 ‘‘(vi) demographic and geographic 

19 data, including property locations by cen20 sus tract or larger geographic location if 

21 necessary to protect personally identifiable 

22 information; 

23 ‘‘(B) the performance of loans after an 

24 auction or sale under subsection (a), 

25 disaggregated by loan pool, including the initial 


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•S 5342 IS

1 purchaser, current owner, current servicer, data 

2 summarizing any alternatives to foreclosure of3 fered and enacted, and data summarizing the 

4 data collected under subparagraph (A); and 

5 ‘‘(C) the results of a fair lending analysis 

6 conducted based on the data in subparagraphs 

7 (A) and (B) to identify any discriminatory im8 pacts or outcomes associated with the auctions 

9 or sales. 

10 ‘‘(c) PENALTIES FOR NONCOMPLIANCE.—The enter11 prises may— 

12 ‘‘(1) forcibly retain loans or properties, without 

13 providing compensation, from purchasers that do not 

14 meet the requirements under subsection (a)(4); and 

15 ‘‘(2) enact additional penalties for purchasers 

16 described in paragraph (1) that the Director deter17 mines have repeatedly not complied with the require18 ments under subsection (a)(5), including monetary 

19 penalties and prohibition from participating in sales 

20 under this section. 

21 ‘‘(d) REGULATIONS.—The Director shall issue regu22 lations defining the terms of permissible auctions or sales 

23 in accordance with the requirements in this section.’’. 

Æ 


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