I 
113TH CONGRESS 
2D SESSION 
H. R. 5396 
To require servicers to establish a deed-for-lease program under which eligible 
mortgagors may remain in their homes as renters. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 1, 2014 
Ms. MICHELLE LUJAN GRISHAM of New Mexico introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To require servicers to establish a deed-for-lease program 
under which eligible mortgagors may remain in their 
homes as renters. 
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 ‘‘Keeping Families 
Home Act of 2014’’. 
SEC. 2. DEED-FOR-LEASE PROGRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—Each servicer shall establish 
a deed-for-lease program (hereinafter referred to as 
VerDate Mar 15 2010 
02:33 Aug 16, 2014
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5396.IH
H5396
tjames on DSK5VPTVN1PROD with BILLS
the ‘‘Program’’), which shall permit an eligible mort-
gagor to— 
(A) enter into a deed in lieu of foreclosure 
agreement; 
(B) continue to occupy and lease the prop-
erty that is the subject of such agreement for 
a 1-year period that begins on the date of such 
agreement; and 
(C) have a right of first refusal to pur-
chase such property after the end of the 1-year 
lease period, if the owner of the property in-
tends to sell the property at that time. 
(2) EXCEPTION FOR SMALL SERVICERS.—The 
Program requirement under paragraph (1) shall not 
apply to a small servicer, as such term is defined by 
the Secretary of Housing and Urban Development. 
(b) NOTICE REQUIREMENT.—Servicers shall provide 
each eligible mortgagor with information about the Pro-
gram and how to apply to participate in the Program. 
(c) LEASE TERMS.—A lease entered into by an eligi-
ble mortgagor under the Program shall— 
(1) carry a monthly rent amount equal to the 
fair market rent for such property, as determined by 
an independent private appraiser hired by and paid 
by the servicer; and 
VerDate Mar 15 2010 
20:28 Aug 20, 2014
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5396.IH
H5396
tjames on DSK5VPTVN1PROD with BILLS
(2) contain all typical lease provisions for simi-
lar rental property. 
(d) APPLICATION PROCESS.— 
(1) IN GENERAL.—An eligible mortgagor may 
apply for the Program at any time. 
(2) EFFECT OF FORECLOSURE SALE.—If there 
is a foreclosure sale pending with respect to the 
property— 
(A) the eligible mortgagor may only apply 
for the Program before the date that is 7 days 
before the date of such foreclosure sale; and 
(B) once the eligible mortgagor applies for 
the Program, the foreclosure sale shall be halt-
ed until after the eligible mortgagor’s Program 
application has been evaluated. 
(3) CONTENTS OF APPLICATION.— 
(A) IN
GENERAL.—In applying for the 
Program, an eligible mortgagor shall provide 
the servicer with proof of the following informa-
tion: 
(i) The eligible mortgagor is subject 
to a financial hardship that makes the eli-
gible mortgagor unable to continue making 
timely payments on the eligible mortgage 
loan. 
VerDate Mar 15 2010 
02:33 Aug 16, 2014
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5396.IH
H5396
tjames on DSK5VPTVN1PROD with BILLS
(ii) The eligible mortgagor is eligible 
to pay the monthly rent amount described 
under subsection (c)(1) and such amount 
is no more than 31 percent of the eligible 
mortgagor’s monthly income. 
(iii) The eligible mortgagor currently 
lives in the property and intends to con-
tinue doing so during the 1-year lease 
term. 
(B) ABILITY TO PAY HIGHER PERCENTAGE 
OF
INCOME
IN
RENT.—Notwithstanding sub-
paragraph (A)(ii), if an eligible mortgagor be-
lieves they are able pay the monthly rent 
amount despite such amount exceeding 31 per-
cent of the eligible mortgagor’s monthly income, 
the eligible mortgagor may request that the De-
partment of Housing and Urban Development 
review their information, along with any con-
tributing factors the eligible mortgagor may 
have (such as a low debt burden) and, if the 
Department notifies the eligible mortgagor that 
the Department agrees that the eligible mort-
gagor is able to pay a monthly rent amount 
that is equal to a percentage of their monthly 
income that is higher than 31 percent, such 
VerDate Mar 15 2010 
20:28 Aug 20, 2014
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5396.IH
H5396
tjames on DSK5VPTVN1PROD with BILLS
within 30 days of receiving such application and 
shall accept an eligible mortgagor into the Program 
if the eligible mortgagor has provided the proof de-
scribed under subsection (d)(3)(A). 
(2) NOTIFICATION.—Promptly after making a 
determination under paragraph (1), the servicer 
shall notify the eligible mortgagor of such deter-
mination in writing and, if the servicer determines 
that the eligible mortgagor may not be accepted into 
the Program, the servicer shall specifically explain in 
writing why the eligible mortgage was not accepted. 
(f) SUBSEQUENT OWNERS FOLLOW PROGRAM RE-
QUIREMENTS.—Any subsequent owner of the property 
being leased pursuant to the Program shall— 
(1) maintain the Program and abide by the 
terms of the Program to the same extent as the 
servicer of the eligible mortgage; and 
(2) certify to the Department of Housing and 
Urban Development, before finalizing any purchase 
of the property, that they will abide by the terms of 
the Program. 
(g) RULEMAKING; COMPLIANCE EVALUATION.—The 
Department of Housing and Urban Development shall— 
(1) issue such regulations as may be necessary 
to carry out this section; 
VerDate Mar 15 2010 
20:28 Aug 20, 2014
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5396.IH
H5396
tjames on DSK5VPTVN1PROD with BILLS
(2) evaluate the compliance by servicers and 
owners with the requirements of this section; and 
(3) enforce the requirements of this section. 
(h) DEFINITIONS.—For purposes of this section: 
(1) ELIGIBLE MORTGAGOR.—The term ‘‘eligible 
mortgagor’’ means a mortgagor under an eligible 
mortgage. 
(2) ELIGIBLE MORTGAGE.—The term ‘‘eligible 
mortgage’’ means a first or subordinate mortgage on 
a property that— 
(A) is a single family property; and 
(B) is currently being used as the principal 
residence of the eligible mortgagor. 
(3) SINGLE
FAMILY
PROPERTY.—The term 
‘‘single family property’’ means— 
(A) a structure consisting of 1 to 4 dwell-
ing units; 
(B) a dwelling unit in a multi-unit condo-
minium property together with an undivided in-
terest in the common areas and facilities serv-
ing the property; 
(C) a dwelling unit in a multi-unit project 
for which purchase of stock or a membership 
interest entitles the purchaser to permanent oc-
cupancy of that unit; or 
VerDate Mar 15 2010 
02:33 Aug 16, 2014
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5396.IH
H5396
tjames on DSK5VPTVN1PROD with BILLS
(D) a manufactured housing unit. 
Æ 
VerDate Mar 15 2010 
02:33 Aug 16, 2014
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6301
E:\BILLS\H5396.IH
H5396
tjames on DSK5VPTVN1PROD with BILLS