II 

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. 

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 ‘‘Stopping Ongoing 

5 Lender Delays Act’’ or the ‘‘SOLD Act’’. 

6 SEC. 2. TRUTH IN LENDING ACT AMENDMENTS. 

7 Chapter 2 of the Truth in Lending Act (15 U.S.C. 

8 1631 et seq.) is amended by inserting before section 130 

9 (15 U.S.C. 1640) the following new section: 


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•S 3177 IS

1 ‘‘SEC. 129I. RESPONSES REQUIRED FOR MORTGAGOR RE2 QUESTS FOR REFINANCING. 

3 ‘‘(a) IN GENERAL.— 

4 ‘‘(1) WRITTEN RESPONSE TO MORTGAGOR RE5 QUESTS REQUIRED.— 

6 ‘‘(A) IN GENERAL.—Each servicer shall re7 spond in writing to a mortgagor of a residential 

8 mortgage loan who has submitted a written re9 quest that meets the requirements of subsection 

10 (b), not later than the end of the 30-calendar 

11 day period beginning on the date of receipt of 

12 such request, subject to paragraphs (2) and (3). 

13 ‘‘(B) APPLICABILITY.—Subparagraph (A) 

14 shall apply, except as provided in subsection 

15 (b), and notwithstanding any other provision of 

16 law or of any contract, including a contract be17 tween a servicer of a residential mortgage loan 

18 and a securitization vehicle or other investment 

19 vehicle. 

20 ‘‘(2) CONTENT.—A written response by a 

21 servicer under paragraph (1) shall specify— 

22 ‘‘(A) a decision on whether such request 

23 has been denied or approved, or that such re24 quest has been approved subject to specified 

25 changes; or 


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•S 3177 IS

1 ‘‘(B) that additional time is required, in 

2 which case the servicer shall provide a new deci3 sion date. 

4 ‘‘(3) SINGLE EXTENSION OF NEW DECISION

5 DATE AUTHORIZED.—A servicer may, upon written 

6 notice to the mortgagor, extend a new decision date 

7 provided under paragraph (2)(B) a single time, for 

8 a period of not longer than 30 additional calendar 

9 days. 

10 ‘‘(b) INAPPLICABILITY TO CERTAIN EXISTING MORT11 GAGES.—Subsection (a) shall not apply with respect to 

12 any residential mortgage with respect to which the mort13 gagor and the mortgagee or servicer have entered into a 

14 written agreement before the date of enactment of this Act 

15 explicitly providing a procedure or terms for approval of 

16 a short sale. 

17 ‘‘(c) MORTGAGOR SUBMISSION.—Subsection (a) shall 

18 apply in any case in which the mortgagor under a residen19 tial mortgage loan submits to the servicer thereof— 

20 ‘‘(1) a written offer for a short sale of the 

21 dwelling or residential real property that is subject 

22 to the mortgage, deed of trust, or other security in23 terest that secures the mortgage loan; and 

24 ‘‘(2) all information required by the servicer in 

25 connection with such a request (including a copy of 


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1 an executed contract between the owner of the dwell2 ing or property and the prospective buyer that is 

3 subject to approval by the servicer). 

4 ‘‘(d) CIVIL ACTIONS AUTHORIZED.—An aggrieved in5 dividual may bring an action in a court of competent juris6 diction, asserting a violation of this section. Aggrieved in7 dividuals may be awarded all appropriate relief, including 

8 equitable relief, and a monetary award of $1,000 per viola9 tion, plus reasonable attorneys’ fees, or such higher 

10 amount as may be appropriate in the case of an estab11 lished pattern or practice of such failures. 

12 ‘‘(e) DEFINITIONS.— 

13 ‘‘(1) RESIDENTIAL MORTGAGE LOAN.—The 

14 term ‘residential mortgage loan’ means any con15 sumer credit transaction that is secured by a mort16 gage, deed of trust, or other equivalent consensual 

17 security interest on a dwelling or on residential real 

18 property that includes a dwelling, other than a con19 sumer credit transaction under an open end credit 

20 plan or an extension of credit relating to a plan de21 scribed in section 101(53D) of title 11, United 

22 States Code. 

23 ‘‘(2) SERVICER.—The term ‘servicer’ has the 

24 same meaning as in section 129A, except that such 

25 term includes a person who makes or holds a resiVerDate Mar 15 2010 00:23 May 16, 2012 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3177.IS S3177

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1 dential mortgage loan (including a pool of residential 

2 mortgage loans), if such person also services the 

3 loan. 

4 ‘‘(3) SHORT SALE.—The term ‘short sale’ 

5 means the sale of the dwelling or residential real 

6 property that is subject to the mortgage, deed or 

7 trust, or other security interest that secures a resi8 dential mortgage loan that— 

9 ‘‘(A) will result in proceeds in an amount 

10 that is less than the remaining amount due 

11 under the mortgage loan; and 

12 ‘‘(B) requires authorization by the 

13 securitization vehicle or other investment vehicle 

14 or holder of the mortgage loan, or the servicer 

15 acting on behalf of such a vehicle or holder.’’. 

Æ 


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