I 
113TH CONGRESS 
2D SESSION 
H. R. 5496 
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 
SEPTEMBER 16, 2014 
Mr. MCNERNEY (for himself, Mr. NUGENT, Mr. ROONEY, Mr. COSTA, Mr. 
CA´RDENAS, Mr. JOHNSON of Georgia, and Mr. GEORGE MILLER of Cali-
fornia) 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. 
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 ‘‘Fast Help For Home-
owners Act’’. 
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SEC. 2. REQUIREMENT FOR PROMPT DECISION. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by inserting 
before section 130 (15 U.S.C. 1640) the following new sec-
tion: 
‘‘SEC. 129I. PROMPT DECISIONMAKING REGARDING SHORT 
SALE. 
‘‘(a) IN GENERAL.—Not later than the end of the 
10-calendar-day period beginning on the date of receipt 
of a written request from a mortgagor of a federally re-
lated mortgage loan that meets the requirements of sub-
section (c), a servicer shall— 
‘‘(1) notify in writing each holder of a subordi-
nate lien on the residential real property that se-
cures such loan of such request; and 
‘‘(2) submit to each such holder a copy of such 
request. 
‘‘(b) TIMELY RESPONSE TO SERVICER NOTIFICATION 
REQUIRED.— 
‘‘(1) IN GENERAL.— 
‘‘(A) TIMELY RESPONSE REQUIRED.—Ex-
cept as provided in subsection (d) and notwith-
standing any other provision of law or of any 
contract, including a contract between a 
servicer of a federally related mortgage loan 
and a securitization vehicle or other investment 
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vehicle, a holder of a subordinate lien that is 
notified by a servicer under subsection (a) shall 
respond in writing to such servicer not later 
than the end of the 45-calendar-day period be-
ginning on the date of receipt of such notifica-
tion. 
‘‘(B) FAILURE TO RESPOND.—If the hold-
er of a subordinate lien that is notified by a 
servicer under subsection (a) does not respond 
within the 45-calendar-day period described in 
subparagraph (A), the request from a mort-
gagor described in subsection (a) shall be con-
sidered to have been approved by the such hold-
er. 
‘‘(2) CONTENT.—A written response by such 
holder under subsection (a) shall specify a decision 
on whether the request described in such subsection 
has been denied, approved, or that such request has 
been approved subject to specified changes. 
‘‘(c) MORTGAGOR SUBMISSION.—Subsection (a) shall 
apply in any case in which the mortgagor of a federally 
related 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 
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to a mortgage, deed of trust, or other security inter-
est 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 dwell-
ing or property and the prospective buyer that is 
subject to approval by the servicer). 
‘‘(d) INAPPLICABILITY TO CERTAIN EXISTING MORT-
GAGES.—This section shall not apply to any federally re-
lated mortgage loan with respect to which the mortgagor 
and the mortgagee or servicer have entered into a written 
agreement before the date of the enactment of the Fast 
Help For Homeowners Act explicitly providing a proce-
dure or terms for approval of a short sale. 
‘‘(e) TREATMENT OF OTHER TIME LIMITS.—This 
section may not be construed to preempt, annul, or other-
wise affect any other provision of law or of any contract 
or program that provides a shorter period than is provided 
under subsection (b) for a decision to be made by a holder 
of a subordinate lien described in subsection (a)(1) regard-
ing a short sale. 
‘‘(f) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) FEDERALLY RELATED MORTGAGE LOAN.— 
The term ‘federally related mortgage loan’ has the 
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same meaning as is given in section 3 of the Real 
Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2602). 
‘‘(2) SECURITIZATION
VEHICLE.—The term 
‘securitization vehicle’ means a trust, special purpose 
entity, or other legal structure that is used to facili-
tate the issuing of securities, participation certifi-
cates, or similar instruments backed by or referring 
to a pool of assets that includes federally related 
mortgage loans (or instruments that are related to 
federally related mortgage loans, such as credit- 
linked notes). 
‘‘(3) SERVICER.—The term ‘servicer’ has the 
same meaning as in section 129A, except that such 
term includes a person who makes or holds a feder-
ally related mortgage loan (including a pool of feder-
ally related mortgage loans), if such person also 
services the loan. 
‘‘(4) 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 feder-
ally related mortgage loan that— 
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‘‘(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.’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to any written request for a short 
sale made after the date of the enactment of this Act. 
Æ 
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