H.R. 5237House115th Congress (2017-2019)In Committee

Fast Help For Homeowners Act

Introduced March 9, 2018

AI-Generated Summary

Updated April 15, 2026 at 8:42 PM UTC

The Fast Help For Homeowners Act would make the owners of secondary liens on a home with a federally‑related mortgage act quickly when a homeowner asks to sell the property for less than the loan balance (a short sale). After a homeowner submits a written short‑sale request, the mortgage servicer must notify each subordinate‑lien holder within 10 days, and the lien holder must give a written decision within 30 days. If the lien holder does not reply in time, the short‑sale request is automatically treated as approved.

Key Provisions

  • Servicers must forward a homeowner’s written short‑sale request to every holder of a subordinate lien on the property within 10 calendar days.
  • Each subordinate‑lien holder must respond in writing within 30 calendar days, stating whether the request is denied, approved, or approved with conditions.
  • If a lien holder fails to respond within the 30‑day window, the short‑sale request is considered approved by that holder.
  • The rule applies to all federally‑related mortgage loans unless the borrower and lender already have a written short‑sale agreement in place before the law’s enactment.
  • The Act does not override any other law or contract that requires a shorter response time.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Financial Services.

March 9, 2018

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HouseIntro Referral

Introduced in House

March 9, 2018

HouseIntro Referral

Referred to the House Committee on Financial Services.

March 9, 2018

Floor Debate

10 members

What members said about H.R. 5237 on the floor

9 Republicans1 Democrat
Michael C. Burgess
Rep. Michael C. BurgessR-TX-26 · Apr 18, 2018

Mr. Speaker, the opioid epidemic has swept across the country impacting millions of Americans who lost loved ones to this preventable crisis. No community is immune. Just as the President of the…

H. Morgan Griffith
Rep. H. Morgan GriffithR-VA-9 · Apr 18, 2018

Mr. Speaker, I appreciate all of the work that Chairman Burgess has done on this issue. It is important that he has highlighted it and made it one of the priorities of our committee--not only our…

Greg Walden
Rep. Greg WaldenR-OR-2 · Apr 18, 2018

Mr. Speaker, I thank Dr. Burgess and appreciate his leadership on this issue and the hard work he and his members on both sides of the aisle have done on the Subcommittee on Health in the Energy and…

David B. McKinley
Rep. David B. McKinleyR-WV-1 · Apr 18, 2018

Mr. Speaker, I thank Chairman Burgess for organizing this Special Order event. Mr. Speaker, the United States represents only 5 percent of the global population, yet we consume over 80 percent of the…

Gene Green
Rep. Gene GreenD-TX-29 · Apr 18, 2018

Mr. Speaker, I thank the chair of our Health Subcommittee for organizing this Special Order tonight because it is so important to our country. Mr. Speaker, I rise to bring attention to the countless…

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Brett Guthrie
Rep. Brett GuthrieR-KY-2 · Apr 18, 2018

Mr. Speaker, I thank the chairman of the subcommittee for organizing this event. On behalf of the 1,419 Kentuckians who died of an opioid overdose in 2016, and the countless more who are currently…

Tim Walberg
Rep. Tim WalbergR-MI-7 · Apr 18, 2018

Mr. Speaker, I thank the chairman for his good work in organizing this Special Order this evening. The tragic opioid epidemic has, unfortunately, become a major part of our national conversation, and…

Gregg Harper
Rep. Gregg HarperR-MS-3 · Apr 18, 2018

Mr. Speaker, I thank the gentleman for organizing this time on the floor today to focus on the opioid crisis in our country. For many years, telehealth has been a priority for me as a critical way to…

Mimi Walters
Rep. Mimi WaltersR-CA-45 · Apr 18, 2018

Mr. Speaker, I rise today to join my colleagues in our effort to raise awareness for the growing opioid epidemic in America, particularly in the State of California. In 2016, nearly 5,000…

Ron Estes
Rep. Ron EstesR-KS-4 · Jun 13, 2018

Mr. Speaker, I was not present for Roll Call vote No. 258 on Motion to Suspend the Rules and Pass, as Amended, H.R. 5237. Had I been present, I would have voted Yea. I was not present for Roll Call…

Bill Text

Latest available legislative text

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Latest
Introduced in HouseIssued March 9, 2018

I

115th CONGRESS

2d Session

H. R. 5237

IN THE HOUSE OF REPRESENTATIVES

March 9, 2018

Mr. McNerney (for himself and Mr. Jones) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To require the holder of a subordinate lien on the property that secures a federally related mortgage loan, upon a request by the homeowner for a short sale, to make a timely decision whether to allow the sale.

1.

Short title

This Act may be cited as the Fast Help For Homeowners Act.

2.

Requirement for prompt decision

(a)

In general

Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended by inserting before section 130 (15 U.S.C. 1640) the following new section:

129I.

Prompt decisionmaking regarding short sale

(a)

In general

Not later than the end of the 10-calendar-day period beginning on the date of receipt of a written request from a mortgagor of a federally related mortgage loan that meets the requirements of subsection (c), a servicer shall—

(1)

notify in writing each holder of a subordinate lien on the residential real property that secures such loan of such request; and

(2)

submit to each such holder a copy of such request.

(b)

Timely response to servicer notification required

(1)

In general

(A)

Timely response required

Except as provided in subsection (d) and notwithstanding any other provision of law or of any contract, including a contract between a servicer of a federally related mortgage loan and a securitization vehicle or other investment vehicle, a holder of a subordinate lien that is notified by a servicer under subsection (a) shall respond in writing to such servicer not later than the end of the 30-calendar-day period beginning on the date of receipt of such notification.

(B)

Failure to respond

If the holder of a subordinate lien that is notified by a servicer under subsection (a) does not respond within the 30-calendar-day period described in subparagraph (A), the request from a mortgagor described in subsection (a) shall be considered to have been approved by the such holder.

(2)

Content

A written response by such holder under subsection (a) shall specify a decision on whether the request described in such subsection has been denied, approved, or that such request has been approved subject to specified changes.

(c)

Mortgagor submission

Subsection (a) shall apply in any case in which the mortgagor of a federally related mortgage loan submits to the servicer thereof—

(1)

a written offer for a short sale of the dwelling or residential real property that is subject to a mortgage, deed of trust, or other security interest that secures the mortgage loan; and

(2)

all information required by the servicer in connection with such a request (including a copy of an executed contract between the owner of the dwelling or property and the prospective buyer that is subject to approval by the servicer).

(d)

Inapplicability to certain existing mortgages

This section shall not apply to any federally related mortgage loan with respect to which the mortgagor and the mortgagee or servicer have entered into a written agreement before the date of the enactment of the Fast Help For Homeowners Act explicitly providing a procedure or terms for approval of a short sale.

(e)

Treatment of other time limits

This section may not be construed to preempt, annul, or otherwise affect any other provision of law or of any contract or program that provides a shorter period than is provided under subsection (b) for a decision to be made by a holder of a subordinate lien described in subsection (a)(1) regarding a short sale.

(f)

Definitions

For purposes of this section, the following definitions shall apply:

(1)

Federally related mortgage loan

The term federally related mortgage loan has the same meaning as is given in section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602).

(2)

Securitization vehicle

The term securitization vehicle means a trust, special purpose entity, or other legal structure that is used to facilitate the issuing of securities, participation certificates, or similar instruments backed by or referring to a pool of assets that includes federally related mortgage loans (or instruments that are related to federally related mortgage loans, such as credit-linked notes).

(3)

Servicer

The term servicer has the same meaning as in section 129A, except that such term includes a person who makes or holds a federally related mortgage loan (including a pool of federally related mortgage loans), if such person also services the loan.

(4)

Short sale

The term short sale means the sale of the dwelling or residential real property that is subject to the mortgage, deed or trust, or other security interest that secures a federally related mortgage loan that—

(A)

will result in proceeds in an amount that is less than the remaining amount due under the mortgage loan; and

(B)

requires authorization by the securitization vehicle or other investment vehicle or holder of the mortgage loan, or the servicer acting on behalf of such a vehicle or holder.

.

(b)

Applicability

The amendment made by subsection (a) shall apply to any written request for a short sale made after the date of the enactment of this Act.