I 
114TH CONGRESS 
1ST SESSION H. R. 4182 
To require the lender or servicer of a home mortgage, upon a request by 
the homeowner for a short sale, to make a prompt decision whether 
to allow the sale. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 3, 2015 
Mr. ROONEY of Florida (for himself and Ms. FRANKEL of Florida) introduced 
the following bill; which was referred to the Committee on Financial Services 
A BILL 
To require the lender or servicer of a home mortgage, upon 
a request by the homeowner for a short sale, to make 
a prompt decision whether to allow the sale. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Prompt Notification 
of Short Sales Act’’. 
SEC. 2. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
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(a) 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 dwell-
ing 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. 
(b) 
SECURITIZATION
VEHICLE.—The 
term 
‘‘securitization vehicle’’ means a trust, special purpose en-
tity, or other legal structure that is used to facilitate the 
issuing of securities, participation certificates, or similar 
instruments backed by or referring to a pool of assets that 
includes residential mortgage loans (or instruments that 
are related to residential mortgage loans, such as credit- 
linked notes). 
(c) SERVICER.—The term ‘‘servicer’’ has the same 
meaning as in section 129A of the Truth in Lending Act 
(15 U.S.C. 1639a), except that such term includes a per-
son who makes or holds a residential mortgage loan (in-
cluding a pool of residential mortgage loans), if such per-
son also services the loan. 
(d) SHORT SALE.—The term ‘‘short sale’’ means the 
sale of the dwelling or residential real property that is sub-
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ject to the mortgage, deed or trust, or other security inter-
est that secures a residential mortgage loan that— 
(1) will result in proceeds in an amount that is 
less than the remaining amount due under the mort-
gage loan; and 
(2) 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. 
SEC. 3. PROMPT NOTIFICATIONS AND DECISION REGARD-
ING SHORT SALE. 
(a) REQUIREMENT
FOR PROMPT NOTIFICATIONS, 
DECISIONS.— 
(1) NOTIFICATIONS.— 
(A) IN GENERAL.—Each servicer shall pro-
vide in writing to a mortgagor of a residential 
mortgage loan— 
(i) an acknowledgment of receipt of a 
written request of the mortgagor, not later 
than 3 days after the date of such receipt; 
(ii) a notice of any missing or incom-
plete information required with respect to 
such request, not later than 5 days after 
the date of such receipt; and 
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(iii) a definitive response to such re-
quest approving or denying such request, 
not later than 30 days after the date of 
such receipt. 
(B) EXCEPTIONAL
CIRCUMSTANCES.—In 
any case in which a servicer is unable to provide 
a decision with respect to a written request of 
a mortgagor of a residential mortgage loan dur-
ing the 30-day period required by subparagraph 
(A), such period may be extended to not later 
than 60 days after the date of receipt of a com-
pleted application, except that the servicer shall, 
verbally or in writing— 
(i) notify the mortgagor during the 
initial 30-day period that the application is 
still under review; and 
(ii) each week thereafter provide to 
the mortgagor a status update indicating 
the reasons why a decision is pending be-
yond the required 30-day period. 
(C) 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 be-
tween a servicer of a residential mortgage loan 
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and a securitization vehicle or other investment 
vehicle. 
(D) CONTENT.—A written response by a 
servicer under subparagraph (A) shall specify a 
decision on whether such request has been de-
nied, approved, or that such request has been 
approved subject to specified changes. 
(2) MORTGAGOR SUBMISSION.—Paragraph (1) 
shall apply in any case in which the mortgagor 
under a residential mortgage loan submits to the 
servicer thereof— 
(A) a written offer for a short sale of the 
dwelling or residential real property that is sub-
ject to the mortgage, deed of trust, or other se-
curity interest that secures the mortgage loan; 
and 
(B) 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). 
(3) CIVIL
ACTIONS
AUTHORIZED.—An ag-
grieved individual may bring an action in a court of 
competent jurisdiction, asserting a violation of this 
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Act. Aggrieved individuals may be awarded all ap-
propriate relief, including equitable relief, and a 
monetary award of $1,000 per violation, plus reason-
able attorneys’ fees, or such higher amount as may 
be appropriate in the case of an established pattern 
or practice of such failures. 
(b) INAPPLICABILITY TO CERTAIN EXISTING MORT-
GAGES.—Subsection (a) shall not apply with respect to 
any residential mortgage with respect to which the mort-
gagor 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) TREATMENT OF OTHER TIME LIMITS.—This sec-
tion may not be construed to preempt, annul, or otherwise 
affect any other provision of law or of any contract or pro-
gram that provides a shorter period than is provided under 
subsection (a) for a decision by the servicer of a residential 
mortgage loan regarding a short sale of the dwelling or 
residential real property that is subject to the mortgage, 
deed or trust, or other security interest that secures the 
mortgage loan. 
Æ 
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