I 

115TH CONGRESS 

2D SESSION H. R. 5237 

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. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 9, 2018 

Mr. MCNERNEY (for himself and Mr. JONES) introduced the following bill; 

which was referred to the Committee on Financial Services 

A BILL 

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. 

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 ‘‘Fast Help For Home5 owners Act’’. 

6 SEC. 2. REQUIREMENT FOR PROMPT DECISION. 

7 (a) IN GENERAL.—Chapter 2 of the Truth in Lend8 ing Act (15 U.S.C. 1631 et seq.) is amended by inserting 


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1 before section 130 (15 U.S.C. 1640) the following new sec2 tion: 

3 ‘‘SEC. 129I. PROMPT DECISIONMAKING REGARDING SHORT 

4 SALE. 

5 ‘‘(a) IN GENERAL.—Not later than the end of the 

6 10-calendar-day period beginning on the date of receipt 

7 of a written request from a mortgagor of a federally re8 lated mortgage loan that meets the requirements of sub9 section (c), a servicer shall— 

10 ‘‘(1) notify in writing each holder of a subordi11 nate lien on the residential real property that se12 cures such loan of such request; and 

13 ‘‘(2) submit to each such holder a copy of such 

14 request. 

15 ‘‘(b) TIMELY RESPONSE TO SERVICER NOTIFICATION

16 REQUIRED.— 

17 ‘‘(1) IN GENERAL.— 

18 ‘‘(A) TIMELY RESPONSE REQUIRED.—Ex19 cept as provided in subsection (d) and notwith20 standing any other provision of law or of any 

21 contract, including a contract between a 

22 servicer of a federally related mortgage loan 

23 and a securitization vehicle or other investment 

24 vehicle, a holder of a subordinate lien that is 

25 notified by a servicer under subsection (a) shall 


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1 respond in writing to such servicer not later 

2 than the end of the 30-calendar-day period be3 ginning on the date of receipt of such notifica4 tion. 

5 ‘‘(B) FAILURE TO RESPOND.—If the hold6 er of a subordinate lien that is notified by a 

7 servicer under subsection (a) does not respond 

8 within the 30-calendar-day period described in 

9 subparagraph (A), the request from a mort10 gagor described in subsection (a) shall be con11 sidered to have been approved by the such hold12 er. 

13 ‘‘(2) CONTENT.—A written response by such 

14 holder under subsection (a) shall specify a decision 

15 on whether the request described in such subsection 

16 has been denied, approved, or that such request has 

17 been approved subject to specified changes. 

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

19 apply in any case in which the mortgagor of a federally 

20 related mortgage loan submits to the servicer thereof— 

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

22 dwelling or residential real property that is subject 

23 to a mortgage, deed of trust, or other security inter24 est that secures the mortgage loan; and 


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

2 connection with such a request (including a copy of 

3 an executed contract between the owner of the dwell4 ing or property and the prospective buyer that is 

5 subject to approval by the servicer). 

6 ‘‘(d) INAPPLICABILITY TO CERTAIN EXISTING MORT7 GAGES.—This section shall not apply to any federally re8 lated mortgage loan with respect to which the mortgagor 

9 and the mortgagee or servicer have entered into a written 

10 agreement before the date of the enactment of the Fast 

11 Help For Homeowners Act explicitly providing a proce12 dure or terms for approval of a short sale. 

13 ‘‘(e) TREATMENT OF OTHER TIME LIMITS.—This 

14 section may not be construed to preempt, annul, or other15 wise affect any other provision of law or of any contract 

16 or program that provides a shorter period than is provided 

17 under subsection (b) for a decision to be made by a holder 

18 of a subordinate lien described in subsection (a)(1) regard19 ing a short sale. 

20 ‘‘(f) DEFINITIONS.—For purposes of this section, the 

21 following definitions shall apply: 

22 ‘‘(1) FEDERALLY RELATED MORTGAGE LOAN.— 

23 The term ‘federally related mortgage loan’ has the 

24 same meaning as is given in section 3 of the Real 


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1 Estate Settlement Procedures Act of 1974 (12 

2 U.S.C. 2602). 

3 ‘‘(2) SECURITIZATION VEHICLE.—The term 

4 ‘securitization vehicle’ means a trust, special purpose 

5 entity, or other legal structure that is used to facili6 tate the issuing of securities, participation certifi7 cates, or similar instruments backed by or referring 

8 to a pool of assets that includes federally related 

9 mortgage loans (or instruments that are related to 

10 federally related mortgage loans, such as credit11 linked notes). 

12 ‘‘(3) SERVICER.—The term ‘servicer’ has the 

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

14 term includes a person who makes or holds a feder15 ally related mortgage loan (including a pool of feder16 ally related mortgage loans), if such person also 

17 services the loan. 

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

19 means the sale of the dwelling or residential real 

20 property that is subject to the mortgage, deed or 

21 trust, or other security interest that secures a feder22 ally related mortgage loan that— 

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

24 that is less than the remaining amount due 

25 under the mortgage loan; and 


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1 ‘‘(B) requires authorization by the 

2 securitization vehicle or other investment vehicle 

3 or holder of the mortgage loan, or the servicer 

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

5 (b) APPLICABILITY.—The amendment made by sub6 section (a) shall apply to any written request for a short 

7 sale made after the date of the enactment of this Act. 

Æ 


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