IN THE SENATE OF THE UNITED STATES
February 9, 2012
Mr. Heller introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
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.
This Act may be cited as the
Keeping Families in their Home Act of
Bank leasing of foreclosed properties
Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end the following:
Leasing of foreclosed property
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—
was or is security for an extension of credit by such depository institution or affiliate; and
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.
Subparagraph (A) shall apply, notwithstanding any other provision of Federal or State law—
restricting the time during which a depository institution or any affiliate of a depository institution may hold or lease property; or
prohibiting a depository institution or any affiliate of a depository institution from leasing property.
Safety and soundness regulations
The Federal banking agencies shall jointly prescribe regulations which—
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;
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
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.
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.
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.
Intent of Congress
It is the intent of Congress that—
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
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.
Government sponsored enterprise leasing of foreclosed properties
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.
The term enterprise means—
the Federal National Mortgage Association; and
the Federal Home Loan Mortgage Corporation.