II 

112TH CONGRESS 

2D SESSION S. 2080 

To authorize depository institutions, depository institution holding companies, 

Fannie Mae, and Freddie Mac to lease foreclosed property held by 

such entities for up to 5 years, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 9, 2012 

Mr. HELLER introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To authorize depository institutions, depository institution 

holding companies, Fannie Mae, and Freddie Mac to 

lease foreclosed property held by such entities for up 

to 5 years, 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 ‘‘Keeping Families in 

5 their Home Act of 2012’’. 


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1 SEC. 2. BANK LEASING OF FORECLOSED PROPERTIES. 

2 (a) IN GENERAL.—Section 18 of the Federal Deposit 

3 Insurance Act (12 U.S.C. 1828) is amended by adding at 

4 the end the following: 

5 ‘‘(aa) LEASING OF FORECLOSED PROPERTY.— 

6 ‘‘(1) LEASING AUTHORIZED.— 

7 ‘‘(A) IN GENERAL.—A depository institu8 tion or any affiliate of a depository institution, 

9 subject to this subsection and regulations pre10 scribed under this subsection, may lease to any 

11 person, including a lease with an option to pur12 chase or a right of first refusal, for not to ex13 ceed 5 years, an interest in residential property 

14 which— 

15 ‘‘(i) was or is security for an exten16 sion of credit by such depository institution 

17 or affiliate; and 

18 ‘‘(ii) came under the ownership or 

19 control of the depository institution or af20 filiate through foreclosure, or a deed in 

21 lieu of foreclosure, on the extension of 

22 credit. 

23 ‘‘(B) PREEMPTION.—Subparagraph (A) 

24 shall apply, notwithstanding any other provision 

25 of Federal or State law— 


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1 ‘‘(i) restricting the time during which 

2 a depository institution or any affiliate of 

3 a depository institution may hold or lease 

4 property; or 

5 ‘‘(ii) prohibiting a depository institu6 tion or any affiliate of a depository institu7 tion from leasing property. 

8 ‘‘(2) SAFETY AND SOUNDNESS REGULATIONS.— 

9 The Federal banking agencies shall jointly prescribe 

10 regulations which— 

11 ‘‘(A) establish criteria and minimum re12 quirements for the leasing activity of any depos13 itory institution or affiliate of a depository in14 stitution, including minimum capital require15 ments, that the agencies determine to be appro16 priate for the preservation of the safety and 

17 soundness of the depository institution or affil18 iate; 

19 ‘‘(B) establish requirements or exceptions 

20 that the agencies determine are appropriate 

21 under this subsection for any such depository 

22 institution or affiliate for any other purpose; 

23 and 

24 ‘‘(C) provide for appropriate actions under 

25 section 38 with respect to any such lease, as 


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1 necessary to protect the capital or safety and 

2 soundness of the depository institution or affil3 iate or any other necessary enforcement action. 

4 ‘‘(3) LENGTH OF LEASE.—If any provision of 

5 any Federal or State law, including the Bank Hold6 ing Company Act of 1956, governing the permissible 

7 activities of depository institutions or affiliates of de8 pository institutions permits a depository institution 

9 or any such affiliate to hold property as described in 

10 paragraph (1) for a period longer than 5 years, any 

11 lease under paragraph (1) may be extended to the 

12 extent permitted by such provision of law. 

13 ‘‘(4) SUNSET.—This section shall apply only 

14 with respect to leases entered into during the 3-year 

15 period beginning on the date of enactment of the 

16 Keeping Families in their Home Act of 2012.’’. 

17 (b) INTENT OF CONGRESS.—It is the intent of Con18 gress that— 

19 (1) no permanent change in policy on leasing 

20 foreclosed property is established by virtue of the en21 actment of this section with respect to depository in22 stitutions and depository institution holding compa23 nies; and 

24 (2) subsection (aa) of section 18 of the Federal 

25 Deposit Insurance Act (as added by this section) 


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1 should not apply to leases entered into after the sun2 set date contained in such subsection. 

3 SEC. 3. GOVERNMENT SPONSORED ENTERPRISE LEASING 

4 OF FORECLOSED PROPERTIES. 

5 (a) IN GENERAL.—For the purpose of mitigating 

6 losses to the taxpayer and stabilizing home prices, an en7 terprise may market for rental any real estate owned prop8 erties and assets of such enterprises and enter into lease 

9 agreements with lessees, as the Federal Housing Finance 

10 Agency determines appropriate, prior to the sale of such 

11 properties and assets, except that any such lease agree12 ment shall be for a term that is not longer than 5 years. 

13 Authority to enter into leasing agreements pursuant to 

14 this subsection shall terminate 3 years after the date of 

15 enactment of this Act. 

16 (b) ENTERPRISE DEFINED.—The term ‘‘enterprise’’ 

17 means— 

18 (1) the Federal National Mortgage Association; 

19 and 

20 (2) the Federal Home Loan Mortgage Corpora21 tion. 

Æ 


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