[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3164 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3164

To require Fannie Mae and Freddie Mac to disclose the minimum purchase 
   price that such an enterprise will accept on the short sale of a 
  residence financed by a mortgage purchased by such an enterprise in 
     order to make short sales a viable alternative to foreclosure.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 12, 2011

   Mrs. Davis of California (for herself, Ms. Speier, and Mr. Honda) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
To require Fannie Mae and Freddie Mac to disclose the minimum purchase 
   price that such an enterprise will accept on the short sale of a 
  residence financed by a mortgage purchased by such an enterprise in 
     order to make short sales a viable alternative to foreclosure.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Short Sale Transparency Act of 
2011''.

SEC. 2. SHORT SALE DISCLOSURE REQUIREMENT.

    (a) Disclosure.--The Director of the Federal Housing Finance Agency 
shall require the Federal National Mortgage Association and the Federal 
Home Loan Mortgage Corporation, in any case in which such Association 
or Corporation denies the purchase of a residential mortgage loan made 
to finance the purchase, under a short sale, of a covered dwelling on 
the basis that the purchase price involved in the short sale is 
insufficient, to promptly disclose to the prospective seller of the 
covered dwelling the amount by which such purchase price was less than 
the minimum purchase price sufficient for such Association or 
Corporation to approve purchase of such mortgage.
    (b) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Short sale.--The term ``short sale'' means, with 
        respect to a residential mortgage loan on a covered dwelling, a 
        purchase of the dwelling that will result in proceeds in an 
        amount that is less than the remaining amount due under the 
        residential mortgage loan on the covered dwelling.
            (2) Covered dwelling.--The term ``covered dwelling'' means 
        a residential real property that--
                    (A) consists of from one to four dwelling units; 
                and
                    (B) is subject to a mortgage, deed or trust, or 
                other security interest that secures a residential 
                mortgage loan on which the mortgagor is delinquent on 
                payments due under the mortgage loan.
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