1. Short title
This Act may be cited as the “Short Sale Transparency Act of 2013”.
Short Sale Transparency Act of 2013
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.
2. Short sale disclosure requirement
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.
Definitions— For purposes of this section, the following definitions shall apply:
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.
Covered dwelling— The term “covered dwelling” means a residential real property that—
consists of from one to four dwelling units; and
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.