I 112th CONGRESS 1st Session H. R. 3164 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.

1.

Short title

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

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.