[Congressional Record Volume 172, Number 42 (Thursday, March 5, 2026)]
[Senate]
[Pages S899-S902]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4364. Mr. REED submitted an amendment intended to be proposed by 
him to the bill H.R. 6644, a bill to increase the supply of housing in 
America, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following:

     SEC. ___. PRESERVING HOMES AND COMMUNITIES.

       (a) Sale of FHA Non-performing Single Family Mortgage 
     Loans.--
       (1) In general.--Title II of the National Housing Act (12 
     U.S.C. 1707 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 259. SALE OF NON-PERFORMING SINGLE FAMILY MORTGAGE 
                   LOANS.

       ``(a) Single Family Sales.--The Secretary may conduct sales 
     of 1 or more single family non-performing residential 
     mortgage loans insured under this title only if the following 
     requirements are met:
       ``(1) The Secretary determines that no other reasonable 
     measures other than a sale are available to restore the Fund 
     to, or keep the Fund above, the minimum capital requirements 
     under section 205(f)(4).
       ``(2) The Secretary establishes a system that provides 
     priority to Federal, State, local, or Tribal governments or 
     nonprofit organizations that have the capacity and experience 
     required for buying, servicing, and resolving single family 
     mortgage loans in a manner that promotes affordable housing, 
     fair housing, affordable homeownership, housing counseling, 
     or neighborhood stabilization.
       ``(3) Applicable loss mitigation required under section 230 
     is exhausted before any loan is placed into the loan sale.
       ``(4) Clear, written notice is sent by certified and first-
     class mail by the servicer to the borrower of the loan, all 
     owners of record, and any applicable estate of the borrower 
     with a copy sent to the Secretary, not less than 90 days 
     before the inclusion of the loan in any single family sale--
       ``(A) stating that the loan will be included in a single 
     family sale of non-performing loans; and
       ``(B) describing the sale process, including--
       ``(i) the loss mitigation or other protections available to 
     the borrower and other owners of record both before and after 
     the sale;
       ``(ii) the status of any loss mitigation actions offered by 
     the mortgagee with respect to the loan, including decisions 
     on all loss mitigation reviews, descriptions of any loss 
     mitigation options offered or denied, and supporting 
     documentation for the most recent evaluation; and
       ``(iii) the obligations of the servicer of the loan before 
     and after the sale, including loss mitigation requirements.
       ``(5) Purchasers take loans subject to the following 
     requirements:

[[Page S900]]

       ``(A) The provision of loss mitigation options to all 
     eligible borrowers that offer terms and protections at least 
     as favorable as those available under loss mitigation 
     guidelines of the Federal Housing Administration, including 
     the absence of fees for loss mitigation and loan 
     modifications that reduce payments to an affordable level.
       ``(B) The provision of a deferral program that offers terms 
     and protections at least as favorable as those provided by a 
     partial claim available under loss mitigation guidelines of 
     the Federal Housing Administration, including the absence of 
     fees, to borrowers who can afford their pre-hardship mortgage 
     payment.
       ``(C) Written, public disclosure of post-sale loss 
     mitigation options.
       ``(D) Failure by the purchaser to follow the established 
     loss mitigation guidelines shall serve as a defense to a 
     judicial foreclosure and a basis to enjoin or otherwise stay 
     a non-judicial foreclosure.
       ``(E) Data reporting as provided under subsection (d)(1).
       ``(F) Maintenance of vacant and abandoned property, 
     including the payment of local property taxes, until such 
     time as title is transferred to a nonprofit organization or 
     the property is sold to a bona fide third-party purchaser.
  

       ``(G) Where a property becomes vacant, the purchaser shall 
     not release the lien until the property is sold or donated.
       ``(H) Use of contract for deed, lease to own, or a land 
     installment contract to sell or otherwise transfer any 
     property that is secured by a purchased loan shall be 
     prohibited unless the tenant or purchaser is a nonprofit 
     organization.
       ``(I) For all non-performing loans where a home retention 
     loss mitigation option is not possible and the purchaser 
     acquires the property through foreclosure sale, 75 percent of 
     those properties shall be--
       ``(i) sold at the current fair market value to an owner 
     occupant;
       ``(ii) sold or donated to a non-profit or local government 
     entity that will commit to 1 of the outcomes described in 
     clause (i) or (iii);
       ``(iii) for not less than the 10-year period beginning on 
     the date on which any entity initially leases the property, 
     and with respect to any new lease beginning within such 10-
     year period, leased to a tenant with income that is not more 
     than 100 percent of the area median income at the time the 
     tenant initially leases the property, with monthly rents that 
     are not more than 30 percent of the monthly household income, 
     provided that the property owner accepts as rental payment 
     any legal source of income, including--

       ``(I) a housing voucher under section 8 of the United 
     States Housing Act of 1937 (42 U.S.C. 1437f) and any form of 
     Federal, State, or local housing assistance provided to a 
     person or family or provided to a housing owner on behalf of 
     a person or family, including--

       ``(aa) rental vouchers;
       ``(bb) rental assistance;
       ``(cc) rental subsidies from nongovernmental organizations; 
     and
       ``(dd) homeownership subsidies;

       ``(II) income received as a monthly benefit under title II 
     of the Social Security Act (42 U.S.C. 401 et seq.), as a 
     supplemental security income benefit under title XVI of the 
     Social Security Act (42 U.S.C. 1381 et seq.), or as a benefit 
     under the Railroad Retirement Act of 1974 (45 U.S.C. 231 et 
     seq.), including any such benefit to which the individual is 
     entitled for which payment is made to a representative payee;
       ``(III) income received by court order, including spousal 
     support and child support;
       ``(IV) any payment from a trust, guardian, conservator, 
     cosigner, or relative; and
       ``(V) any other lawful source of income or funds, including 
     savings accounts and investments; or

       ``(iv) for any property that is not habitable, demolished 
     or donated to a land bank with a cash donation to cover 
     demolition costs.
       ``(b) Direct Loan Sales.--The Secretary may permit direct 
     loan sales of single family non-performing residential loans 
     insured under this title only if--
       ``(1) the loans are sold to municipalities, land banks, or 
     nonprofit organizations that work in affordable housing, 
     housing counseling, or neighborhood stabilization;
       ``(2) the purchaser complies with the requirements under 
     paragraph (5) of subsection (a); and
       ``(3) the pricing reasonably reflects the costs of 
     complying with the requirements under paragraphs (3) through 
     (5) of subsection (a).
       ``(c) Forbearance.--The Secretary may not sell--
       ``(1) a single family non-performing residential loan 
     insured under this Title while the loan is in a forbearance 
     plan.
       ``(2) a single family non-performing residential loan 
     insured under this title that is not more than 90 days from 
     the end of a forbearance plan.
  

       ``(d) Data and Reporting.--
       ``(1) Purchaser reporting.--During the 4-year period 
     following any single family sale of non-performing 
     residential single family mortgage loans under subsection (a) 
     or (b), the Secretary shall require each purchaser of such a 
     loan, including any subsequent purchaser of the loan, to 
     provide to the Secretary quarterly loan-level data regarding 
     the treatment and outcome of the loan, including--
       ``(A) loan characteristics, including loan type, remaining 
     loan term, loan to value ratio, number of months in arrears, 
     loss mitigation status, and foreclosure status at time of 
     sale;
       ``(B) loss mitigation data, including whether loss 
     mitigation was provided by the purchaser, debt-to-income 
     ratio and percent payment reduction for any modified loans, 
     foreclosures begun or completed, and performance of modified 
     loans;
  

       ``(C) demographic data for the borrower and any co-
     borrower, including race, national origin, sex, ZIP Code, and 
     census tract, and, if available, disability status and 
     veteran status; and
       ``(D) other purchaser actions, including charge offs and 
     resales of loans and dates for such actions.
       ``(2) Semiannual reports to congress.--The Secretary shall 
     submit to Congress, and make publicly available at no cost to 
     the public in a format that is readily accessible on the 
     website of the Department of Housing and Urban Development, 
     semi-annual reports to Congress on--
       ``(A) loans sold in a single family sale under subsection 
     (a), disaggregated by pool, including--
       ``(i) the number of loans and types of loans;
       ``(ii) mean and median delinquency and loan to value ratios 
     at the time of the sale;
       ``(iii) the number and percentage of owner-occupied 
     properties;
       ``(iv) the number and percentage of loans modified prior to 
     the sale;
       ``(v) the number and percentage of loans in foreclosure 
     proceedings at the time of the sale; and
       ``(vi) demographic and geographic data, including property 
     locations by census tract or larger geographic location if 
     necessary to protect personally identifiable information;
       ``(B) the performance of loans after a single family sale 
     under subsection (a), disaggregated by loan pool, including 
     the initial purchaser, current owner, current servicer, data 
     summarizing any alternatives to foreclosure offered and 
     enacted, and data summarizing the data collected under 
     paragraph (1);
       ``(C) the results of a fair lending analysis conducted 
     based on the data in paragraph (1) to identify any 
     discriminatory impacts or outcomes associated with the sales; 
     and
       ``(D) claims paid through the Claims Without Conveyance of 
     Title program under section 204(a)(1)(C), including the 
     number of third party sales by ZIP Code, whether purchasers 
     are owner-occupants, nonprofit organizations, government 
     entities, or investors, and the source of funds or financing 
     used by purchasers.
       ``(e) Penalties for Noncompliance.--The Secretary may--
       ``(1) forcibly retain loans or properties, without 
     providing compensation, from purchasers that do not meet the 
     requirements under subsection (a)(5); and
       ``(2) enact additional penalties for purchasers described 
     in paragraph (1) that the Secretary determines have 
     repeatedly not complied with the requirements under 
     subsection (a)(5), including monetary penalties and 
     prohibition from participating in single family sales under 
     this section.
       ``(f) Regulations.--The Secretary shall issue regulations 
     related to single family sales in accordance with the 
     requirements in this section.

     ``SEC. 260. CLAIMS WITHOUT CONVEYANCE OF TITLE FIRST LOOK 
                   PROGRAM.

       ``(a) Claims Without Conveyance of Title First Look 
     Program.--With respect to a third party sale of properties 
     foreclosed upon and put up for sale in accordance with 
     section 204(a)(1)(C), the Secretary shall maintain an 
     exclusive right for eligible buyers to purchase these 
     properties at a price at or below the fair market value of 
     the property (with appropriate adjustments) for a specified 
     period of time at the start of post-foreclosure sale efforts.
  

       ``(b) Eligible Buyers.--The right to purchase a property 
     under subsection (a) shall be offered to--
       ``(1) homebuyers who will occupy the property as a 
     principal residence;
       ``(2) nonprofit organizations that--
       ``(A) commit in advance to rehabilitate the property and 
     dispose of the property for an allowable use and within a 
     time period to be designated by the Secretary by regulation;
       ``(B) are pre-approved for participation by the Secretary 
     or a designee thereof to ensure that the organization--
       ``(i) maintains active tax-exempt status under section 
     501(c)(3) of the Internal Revenue Code;
       ``(ii) has a primary mission related to--

       ``(I) affordable housing; or
       ``(II) community revitalization through housing-related 
     activities; and

       ``(iii) has demonstrated not less than 2 years of direct 
     experience with real estate project development as an 
     organizational entity; and
       ``(3) Federal, State, local, or Tribal government agencies 
     or instrumentalities that meet the requirements of 
     subparagraph (A) and clauses (ii) and (iii) of subparagraph 
     (B) of paragraph (2).
       ``(c) Allowable Uses.--An allowable use described in this 
     subsection shall include--
       ``(1) renovation and sale, or, if the property already 
     meets the minimum property standards set by the Assistant 
     Secretary for Housing and Federal Housing Commissioner, sale 
     without renovation, to an owner-occupant with an income that 
     is not more than 120 percent of the area median income;

[[Page S901]]

  

       ``(2) renovation and creation of affordable homeownership 
     or, if the property already meets the minimum property 
     standards set by the Assistant Secretary for Housing and 
     Federal Housing Commissioner, creation of affordable 
     homeownership without renovation, by a community land trust 
     or shared equity homeownership program;
       ``(3) renovation and rental to tenants with an income that 
     is not more than 100 percent of the area median income at the 
     time the tenant initially leases the property, with monthly 
     rents that are not more than 30 percent of the monthly 
     household income, for not less than the 10-year period 
     beginning on the date on which any entity initially leases 
     the property, and with respect to any new lease beginning 
     within such 10-year period, provided that the property owner 
     accepts as rental payment any legal source of income, 
     including--
       ``(A) a housing voucher under section 8 of the United 
     States Housing Act of 1937 (42 U.S.C. 1437f) and any form of 
     Federal, State, or local housing assistance provided to a 
     person or family or provided to a housing owner on behalf of 
     a person or family, including--
       ``(i) rental vouchers;
       ``(ii) rental assistance;
       ``(iii) rental subsidies from nongovernmental 
     organizations; and
       ``(iv) homeownership subsidies;
  

       ``(B) income received as a monthly benefit under title II 
     of the Social Security Act (42 U.S.C. 401 et seq.), as a 
     supplemental security income benefit under title XVI of the 
     Social Security Act (42 U.S.C. 1381 et seq.), or as a benefit 
     under the Railroad Retirement Act of 1974 (45 U.S.C. 231 et 
     seq.), including any such benefit to which the individual is 
     entitled for which payment is made to a representative payee;
       ``(C) income received by court order, including spousal 
     support and child support;
       ``(D) any payment from a trust, guardian, conservator, 
     cosigner, or relative; and
       ``(E) any other lawful source of income or funds, including 
     savings accounts and investments; and
       ``(4) demolition, but only if the property is vacant or 
     uninhabitable and if the demolition is part of a strategy 
     that incorporates rehabilitation, new construction, or 
     designation of the land for use as a public amenity.
       ``(d) Reporting Requirements.--
       ``(1) In general.--Each purchaser of a property under this 
     section, other than an owner-occupant, shall, on an annual 
     basis until the purchaser completes the allowable use of the 
     property under subsection (c), report to the Secretary--
       ``(A) the start date and completion date of any 
     rehabilitation;
       ``(B) the scope of work for and the total cost of any 
     rehabilitation;
       ``(C) the end-use of the property, including sale to owner-
     occupant, use in a land trust or other shared equity program, 
     or affordable rental;
       ``(D) the demographics of the end-user of the property, 
     whether an owner-occupant or a tenant, including race, 
     national origin, sex, ZIP Code, and census tract, and, if 
     available, disability status and veteran status; and
       ``(E) the approximate income of the end-user of the 
     property expressed as a percentage of the area median income.
       ``(2) Availability.--The Secretary shall, on an annual 
     basis, make the information collected under paragraph (1) 
     publicly available at no cost to the public in a readily 
     accessible format on the website of the Department of Housing 
     and Urban Development.
       ``(e) Use of Third Party Vendors.--The Secretary may 
     contract with a third-party vendor to assist in carrying out 
     the provisions of this section, including to--
       ``(1) pre-approve nonprofit organizations for participation 
     in the Claims Without Conveyance of Title First Look program;
       ``(2) monitor compliance with allowable uses and time 
     periods designated by the Secretary by regulation; and
       ``(3) facilitate reporting to the Secretary.
       ``(f) Access.--The Secretary shall ensure that any eligible 
     buyer seeking to purchase a property under this section can 
     easily access and inspect the property prior to making a 
     commitment to purchase the property.''.
       (2) Regulations.--Not later than 18 months after the date 
     of enactment of this Act, the Secretary of Housing and Urban 
     Development shall promulgate regulations to carry out the 
     amendments made by this subsection.
       (b) Sale of Fannie Mae and Freddie Mac Non-performing 
     Loans.--The Federal Housing Enterprises Financial Safety and 
     Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended by 
     inserting after section 1328 (12 U.S.C. 4548) the following:

     ``SEC. 1329. SALE OF NON-PERFORMING LOANS.

       ``(a) Bulk Auction or Group Sales.--An enterprise may not 
     conduct bulk auctions or other group sales of single family 
     non-performing residential loans unless the following 
     requirements are met:
       ``(1) The enterprise establishes a system that provides 
     priority to Federal, State, local, or Tribal governments or 
     nonprofit organizations that have the capacity and experience 
     required for buying, servicing, and resolving single family 
     mortgage loans in a manner that promotes affordable housing, 
     fair housing, affordable homeownership, provision of housing 
     counseling, or neighborhood stabilization.
       ``(2) Applicable loss mitigation is exhausted before a loan 
     may be placed into the bulk auction or group sale.
       ``(3) Clear, written notice is sent by the enterprise or 
     servicer through certified and first-class mail to the 
     borrower and all owners of record, with a copy sent to the 
     enterprise if sent by the servicer, not less than 90 days 
     before the inclusion of the loan in any proposed sale--
       ``(A) stating that the loan will be included in a bulk 
     auction or group sale of non-performing loans; and
       ``(B) describing the bulk auction or group sale process, 
     including--
       ``(i) the loss mitigation or other protections available to 
     the borrower and other owners of record both before and after 
     the auction or sale;
       ``(ii) the status of any loss mitigation actions offered by 
     the mortgagee with respect to the loan, including decisions 
     on all loss mitigation reviews, descriptions of any loss 
     mitigation options offered or denied, and supporting 
     documentation for the most recent evaluation; and
       ``(iii) the obligations of the servicer of the loan before 
     and after the auction or sale, including loss mitigation 
     requirements.
       ``(4) The enterprise requires in the terms of the bulk 
     auction or group sale that purchasers take loans subject to 
     the following requirements:
       ``(A) The purchaser is required to provide loss mitigation 
     options to all eligible borrowers that offer terms and 
     protections at least as favorable as those available under 
     loss mitigation guidelines of the enterprise, including the 
     absence of fees for loss mitigation and loan modifications 
     that reduce payments to an affordable level.
       ``(B) The purchaser is required to offer a deferral program 
     that offers terms and protections at least as favorable as 
     those available under loss mitigation guidelines of the 
     enterprise, including the absence of fees, to borrowers who 
     can afford their pre-hardship mortgage payment.
       ``(C) The purchaser is required to provide written, public 
     disclosure of post-sale loss mitigation options that the 
     purchaser makes available to eligible borrowers.
       ``(D) Failure by the purchaser to follow the established 
     loss mitigation guidelines shall serve as a defense to a 
     judicial foreclosure and a basis to enjoin or otherwise stay 
     a non-judicial foreclosure.
       ``(E) Data reporting as provided under subsection (c)(1).
       ``(F) If a property becomes vacant, the purchaser shall not 
     release the lien until the property is sold or donated.
       ``(G) Use of contract for deed, lease to own, or a land 
     installment contract to sell or otherwise transfer any 
     property that is secured by a purchased loan shall be 
     prohibited unless the tenant or purchaser is a nonprofit 
     organization.
  

       ``(H) For all non-performing loans where a home-retention 
     loss mitigation option is not possible and the purchaser 
     acquires the property through foreclosure sale, 75 percent of 
     those properties shall be--
       ``(i) sold at the current fair market value to an owner-
     occupant;
       ``(ii) sold or donated to a nonprofit or local government 
     entity that will commit to 1 of the outcomes described in 
     clause (i) or (iii);
       ``(iii) for not less than the 10-year period beginning on 
     the date on which any entity initially leases the property, 
     and with respect to any new lease beginning within such 10-
     year period, leased to a tenant with an income that is not 
     more than 100 percent of the area median income at the time 
     the tenant initially leases the property, with monthly rents 
     that are not more than 30 percent of the monthly household 
     income, provided that the property owner accepts as rental 
     payment any legal source of income, including--

       ``(I) a housing voucher under section 8 of the United 
     States Housing Act of 1937 (42 U.S.C. 1437f) and any form of 
     Federal, State, or local housing assistance provided to a 
     person or family or provided to a housing owner on behalf of 
     a person or family, including--

       ``(aa) rental vouchers;
       ``(bb) rental assistance;
  

       ``(cc) rental subsidies from nongovernmental organizations; 
     and
       ``(dd) homeownership subsidies;

       ``(II) income received as a monthly benefit under title II 
     of the Social Security Act (42 U.S.C. 401 et seq.), as a 
     supplemental security income benefit under title XVI of the 
     Social Security Act (42 U.S.C. 1381 et seq.), or as a benefit 
     under the Railroad Retirement Act of 1974 (45 U.S.C. 231 et 
     seq.), including any such benefit to which the individual is 
     entitled for which payment is made to a representative payee;
       ``(III) income received by court order, including spousal 
     support and child support;
       ``(IV) any payment from a trust, guardian, conservator, 
     cosigner, or relative; and
       ``(V) any other lawful source of income or funds, including 
     savings accounts and investments; or

       ``(iv) for any property that is not habitable, demolished 
     or donated to a land bank with a cash donation to cover 
     demolition costs.
       ``(5) The enterprise maintains vacant and abandoned 
     property until such time as title is transferred to a 
     nonprofit organization or the property is sold to a bona fide 
     third-party purchaser.
       ``(b) Forbearance.--An enterprise may not sell--
       ``(1) a single family non-performing residential loan while 
     the loan is in a forbearance plan;
       ``(2) a single family non-performing residential loan that 
     is not more than 90 days removed from the end of a 
     forbearance plan.

[[Page S902]]

       ``(c) Data and Reporting.--
       ``(1) Purchaser reporting.--During the 4-year period 
     following any auction or sale of single family non-performing 
     residential loans under subsection (a), the Director shall 
     require the enterprise to collect from each purchaser of such 
     loans, including any subsequent purchaser of a loan, 
     quarterly loan-level data regarding the treatment and outcome 
     of the loan, including--
       ``(A) loan characteristics, including loan type, remaining 
     loan term, loan to value ratio, number of months in arrears, 
     loss mitigation status, and foreclosure status at time of 
     sale;
       ``(B) loss mitigation data, including whether loss 
     mitigation was provided by the purchaser, debt-to-income 
     ratio and percent payment reduction for any modified loans, 
     foreclosures begun or completed, and performance of modified 
     loans;
  

       ``(C) demographic data for each borrower and any co-
     borrower, including race, national origin, sex, ZIP Code, and 
     census tract, and, if available, disability status and 
     veteran status; and
       ``(D) other purchaser actions, including charge offs and 
     resales of loans and dates for such actions.
       ``(2) Semiannual reports to congress.--The Director shall 
     submit to Congress, and make publicly available at no cost to 
     the public in a readily accessible format on the website of 
     the Agency, semi-annual reports on--
       ``(A) loans sold in an auction or sale under subsection (a) 
     by each enterprise, disaggregated by pool, including--
       ``(i) the number of loans and types of loans;
       ``(ii) mean and median delinquency and loan to value ratios 
     at the time of the sale;
       ``(iii) the number and percentage of owner-occupied 
     properties;
       ``(iv) the number and percentage of loans modified prior to 
     auction or sale;
       ``(v) the number and percentage of loans in foreclosure 
     proceedings at the time of auction or sale; and
       ``(vi) demographic and geographic data, including property 
     locations by census tract or larger geographic location if 
     necessary to protect personally identifiable information;
       ``(B) the performance of loans after an auction or sale 
     under subsection (a), disaggregated by loan pool, including 
     the initial purchaser, current owner, current servicer, data 
     summarizing any alternatives to foreclosure offered and 
     enacted, and data summarizing the data collected under 
     subparagraph (A); and
       ``(C) the results of a fair lending analysis conducted 
     based on the data in subparagraphs (A) and (B) to identify 
     any discriminatory impacts or outcomes associated with the 
     auctions or sales.
       ``(d) Penalties for Noncompliance.--The enterprises may--
       ``(1) forcibly retain loans or properties, without 
     providing compensation, from purchasers that do not meet the 
     requirements under subsection (a)(4); and
       ``(2) enact additional penalties for purchasers described 
     in paragraph (1) that the Director determines have repeatedly 
     not complied with the requirements under subsection (a)(5), 
     including monetary penalties and prohibition from 
     participating in sales under this section.
       ``(e) Regulations.--The Director shall issue regulations 
     defining the terms of permissible auctions or sales in 
     accordance with the requirements in this section.

     ``SEC. 1330. SALE OF RE-PERFORMING LOANS.

       ``(a) Bulk Auction or Group Sales.--An enterprise may not 
     conduct bulk auctions or other group sales of single family 
     re-performing residential loans unless the following 
     requirements are met:
       ``(1) The enterprise establishes a system that provides 
     priority to Federal, State, local, or Tribal governments or 
     nonprofit organizations that have the capacity and experience 
     required for buying, servicing, and resolving single family 
     mortgage loans in a manner that promotes affordable housing, 
     fair housing, affordable homeownership, provision of housing 
     counseling, or neighborhood stabilization.
       ``(2) Clear, written notice is sent by the enterprise or 
     servicer through certified and first-class mail to the 
     borrower and all owners of record, with a copy sent to the 
     enterprise if sent by the servicer, not less than 90 days 
     before the inclusion of the loan in any proposed sale--
  

       ``(A) stating that the loan will be included in a bulk 
     auction or group sale of re-performing loans; and
       ``(B) describing the bulk auction or group sale process, 
     including--
       ``(i) the loss mitigation or other protections available to 
     the borrower and other owners of record both before and after 
     the auction or sale; and
       ``(ii) the obligations of the servicer of the loan before 
     and after the auction or sale, including loss mitigation 
     requirements.
       ``(3) The enterprise requires in the terms of the bulk 
     auction or group sale that purchasers take loans subject to 
     the following requirements:
       ``(A) The purchaser is required to offer targeted payment 
     relief options to borrowers that become more than 60 days 
     delinquent on their mortgage after their loan is sold that 
     includes deferral of principal and term extension options 
     that reduce payments to an affordable level.
       ``(B) The purchaser is required to offer a deferral program 
     to borrowers that become more than 60 days delinquent on 
     their mortgage after their loan is sold that offers terms and 
     protections at least as favorable as those available under 
     loss mitigation guidelines of the enterprise, including the 
     absence of fees, to borrowers who can afford their pre-
     hardship mortgage payment.
       ``(C) Failure by the purchaser to follow the established 
     loss mitigation guidelines shall serve as a defense to a 
     judicial foreclosure and a basis to enjoin or otherwise stay 
     a non-judicial foreclosure.
       ``(D) Data reporting as provided under subsection (b)(1).
       ``(E) If a property becomes vacant, the purchaser shall not 
     release the lien until the property is sold or donated.
       ``(F) Use of contract for deed, lease to own, or a land 
     installment contract to sell or otherwise transfer any 
     property that is secured by a purchased loan shall be 
     prohibited unless the tenant or purchaser is a nonprofit 
     organization.
  

       ``(b) Data and Reporting.--
       ``(1) Purchaser reporting.--During the 4-year period 
     following any auction or sale of single family re-performing 
     residential mortgage loans under subsection (a), the Director 
     shall require the enterprise to collect from each purchaser 
     of such loans, including any subsequent purchaser of a loan, 
     quarterly loan-level data regarding the treatment and outcome 
     of the loan, including--
       ``(A) loan characteristics, including loan type, remaining 
     loan term, loan to value ratio, number of months in arrears, 
     and loan status;
       ``(B) loss mitigation data, including whether loss 
     mitigation was provided by the purchaser, debt-to-income 
     ratio and percent payment reduction for any modified loans, 
     and performance of modified loans;
       ``(C) demographic data for each borrower and any co-
     borrower, including race, national origin, sex, ZIP Code, and 
     census tract, and, if available, disability status and 
     veteran status; and
       ``(D) other purchaser actions, including charge offs and 
     resales of loans and dates for such actions.
       ``(2) Semiannual reports to congress.--The Director shall 
     submit to Congress, and make publicly available at no cost to 
     the public in a readily accessible format on the website of 
     the Agency, semi-annual reports on--
       ``(A) loans sold in an auction or sale under subsection (a) 
     by each enterprise, disaggregated by pool, including--
       ``(i) the number of loans and types of loans;
       ``(ii) mean and median delinquency and loan to value ratios 
     at the time of the sale;
       ``(iii) the number and percentage of loans modified prior 
     to auction or sale; and
       ``(iv) demographic and geographic data, including property 
     locations by census tract or larger geographic location if 
     necessary to protect personally identifiable information.
       ``(B) the performance of loans after an auction or sale 
     under subsection (a), disaggregated by loan pool, including 
     the initial purchaser, current owner, current servicer, data 
     summarizing any alternatives to foreclosure offered and 
     enacted, and data summarizing the data collected under 
     subparagraph (A); and
       ``(C) the results of a fair lending analysis conducted 
     based on the data in subparagraphs (A) and (B) to identify 
     any discriminatory impacts or outcomes associated with the 
     auctions or sales.
       ``(c) Penalties for Noncompliance.--The enterprises may 
     forcibly retain loans or properties, without providing 
     compensation, from purchasers that do not meet the 
     requirements under subsection (a)(3).
       ``(d) Regulations.--The Director shall issue regulations 
     defining the terms of permissible auctions or sales in 
     accordance with the requirements in this section.''.
  

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