A bill to authorize depository institutions, depository institution holding companies, Fannie Mae, and Freddie Mac to lease foreclosed property held by such entities for up to 5 years, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Keeping Families in their Home Act 
of 2012''.

SEC. 2. BANK LEASING OF FORECLOSED PROPERTIES.

    (a) In General.--Section 18 of the Federal Deposit Insurance Act 
(12 U.S.C. 1828) is amended by adding at the end the following:
    ``(aa) Leasing of Foreclosed Property.--
            ``(1) Leasing authorized.--
                    ``(A) In general.--A depository institution or any 
                affiliate of a depository institution, subject to this 
                subsection and regulations prescribed under this 
                subsection, may lease to any person, including a lease 
                with an option to purchase or a right of first refusal, 
                for not to exceed 5 years, an interest in residential 
                property which--
                            ``(i) was or is security for an extension 
                        of credit by such depository institution or 
                        affiliate; and
                            ``(ii) came under the ownership or control 
                        of the depository institution or affiliate 
                        through foreclosure, or a deed in lieu of 
                        foreclosure, on the extension of credit.
                    ``(B) Preemption.--Subparagraph (A) shall apply, 
                notwithstanding any other provision of Federal or State 
                law--
                            ``(i) restricting the time during which a 
                        depository institution or any affiliate of a 
                        depository institution may hold or lease 
                        property; or
                            ``(ii) prohibiting a depository institution 
                        or any affiliate of a depository institution 
                        from leasing property.
            ``(2) Safety and soundness regulations.--The Federal 
        banking agencies shall jointly prescribe regulations which--
                    ``(A) establish criteria and minimum requirements 
                for the leasing activity of any depository institution 
                or affiliate of a depository institution, including 
                minimum capital requirements, that the agencies 
                determine to be appropriate for the preservation of the 
                safety and soundness of the depository institution or 
                affiliate;
                    ``(B) establish requirements or exceptions that the 
                agencies determine are appropriate under this 
                subsection for any such depository institution or 
                affiliate for any other purpose; and
                    ``(C) provide for appropriate actions under section 
                38 with respect to any such lease, as necessary to 
                protect the capital or safety and soundness of the 
                depository institution or affiliate or any other 
                necessary enforcement action.
            ``(3) Length of lease.--If any provision of any Federal or 
        State law, including the Bank Holding Company Act of 1956, 
        governing the permissible activities of depository institutions 
        or affiliates of depository institutions permits a depository 
        institution or any such affiliate to hold property as described 
        in paragraph (1) for a period longer than 5 years, any lease 
        under paragraph (1) may be extended to the extent permitted by 
        such provision of law.
            ``(4) Sunset.--This section shall apply only with respect 
        to leases entered into during the 3-year period beginning on 
        the date of enactment of the Keeping Families in their Home Act 
        of 2012.''.
    (b) Intent of Congress.--It is the intent of Congress that--
            (1) no permanent change in policy on leasing foreclosed 
        property is established by virtue of the enactment of this 
        section with respect to depository institutions and depository 
        institution holding companies; and
            (2) subsection (aa) of section 18 of the Federal Deposit 
        Insurance Act (as added by this section) should not apply to 
        leases entered into after the sunset date contained in such 
        subsection.

SEC. 3. GOVERNMENT SPONSORED ENTERPRISE LEASING OF FORECLOSED 
              PROPERTIES.

    (a) In General.--For the purpose of mitigating losses to the 
taxpayer and stabilizing home prices, an enterprise may market for 
rental any real estate owned properties and assets of such enterprises 
and enter into lease agreements with lessees, as the Federal Housing 
Finance Agency determines appropriate, prior to the sale of such 
properties and assets, except that any such lease agreement shall be 
for a term that is not longer than 5 years. Authority to enter into 
leasing agreements pursuant to this subsection shall terminate 3 years 
after the date of enactment of this Act.
    (b) Enterprise Defined.--The term ``enterprise'' means--
            (1) the Federal National Mortgage Association; and
            (2) the Federal Home Loan Mortgage Corporation.

Summary: Keeping Families in their Home Act of 2012 - Amends the Federal Deposit Insurance Act to authorize any depository institution (or affiliate) to lease, including lease with an option to purchase or a right of first refusal, to any individual for up to five years an interest in residential property which: (1) was or is security for an extension of credit by such depository institution (or affiliate), and (2) came under the institution's or affiliate's ownership or control through foreclosure (or a deed in lieu of foreclosure) on the extension of credit.

Preempts any federal or state law that would: (1) restrict the time during which a depository institution or its affiliate may hold or lease property, or (2) prohibit a depository institution or its affiliate from leasing property.

Directs the federal banking agencies to prescribe specified joint safety and soundness regulations, including minimum capital requirements for such institutions or affiliates.

Permits extension of such a lease beyond five years if any federal or state law, including the Bank Holding Company Act of 1956, so permits.

Applies this Act only to leases entered into during the three-year period beginning on the date of the enactment of this Act.

Declares it is the intent of Congress that: (1) no permanent change in policy on leasing foreclosed property is being established with respect to depository institutions and depository institution holding companies, and (2) bank leasing of foreclosed property authorized under this Act should not apply to leases entered into after such three-year period.

Authorizes a government-sponsored enterprise (the Federal National Mortgage Association [Fannie Mae] or the Federal Home Loan Mortgage Corporation [Freddie Mac]) to market for rental, before sale, any of its real estate owned properties and assets as the Federal Housing Finance Agency (FHFA) determines appropriate. Restricts lease agreements to five years.