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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3177 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 3177

   To amend the Truth in Lending Act to require servicers to provide 
     responses to mortgagors requesting residential mortgage loan 
                  refinancing, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 15, 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 amend the Truth in Lending Act to require servicers to provide 
     responses to mortgagors requesting residential mortgage loan 
                  refinancing, and for other purposes.

    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 ``Stopping Ongoing Lender Delays Act'' 
or the ``SOLD Act''.

SEC. 2. TRUTH IN LENDING ACT AMENDMENTS.

    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. RESPONSES REQUIRED FOR MORTGAGOR REQUESTS FOR REFINANCING.

    ``(a) In General.--
            ``(1) Written response to mortgagor requests required.--
                    ``(A) In general.--Each servicer shall respond in 
                writing to a mortgagor of a residential mortgage loan 
                who has submitted a written request that meets the 
                requirements of subsection (b), not later than the end 
                of the 30-calendar day period beginning on the date of 
                receipt of such request, subject to paragraphs (2) and 
                (3).
                    ``(B) Applicability.--Subparagraph (A) shall apply, 
                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.
            ``(2) Content.--A written response by a servicer under 
        paragraph (1) shall specify--
                    ``(A) a decision on whether such request has been 
                denied or approved, or that such request has been 
                approved subject to specified changes; or
                    ``(B) that additional time is required, in which 
                case the servicer shall provide a new decision date.
            ``(3) Single extension of new decision date authorized.--A 
        servicer may, upon written notice to the mortgagor, extend a 
        new decision date provided under paragraph (2)(B) a single 
        time, for a period of not longer than 30 additional calendar 
        days.
    ``(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 enactment of this 
Act explicitly providing a procedure or terms for approval of a short 
sale.
    ``(c) Mortgagor Submission.--Subsection (a) shall apply in any case 
in which the mortgagor under a residential 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 the 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) Civil Actions Authorized.--An aggrieved individual may bring 
an action in a court of competent jurisdiction, asserting a violation 
of this section. Aggrieved individuals may be awarded all appropriate 
relief, including equitable relief, and a monetary award of $1,000 per 
violation, plus reasonable attorneys' fees, or such higher amount as 
may be appropriate in the case of an established pattern or practice of 
such failures.
    ``(e) Definitions.--
            ``(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) Servicer.--The term `servicer' has the same meaning 
        as 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.
            ``(3) 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.''.
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