|Sponsor||Rep. Miller, Gary G.|
|Date||July 29, 2009 (111th Congress, 1st Session)|
|Staff Contact||Andy Koenig|
The House is expected to consider H.R. 2529 on the House floor on Wednesday, July 22, 2009, under a motion to suspend the rules, requiring a two-thirds majority vote for passage. This legislation was introduced by Rep. Gary Miller (R-CA) on May 20, 2009.
Amends the Federal Deposit Insurance Act to authorize any depository institution (or affiliate) to lease, including to lease with an option to purchase, to any person for up to five years an interest in residential property which: (1) was or is security for an extension of credit by such depository institution (or affiliate); and (2) came under the institution's or affiliate's ownership or control through foreclosure on the extension of credit or the bankruptcy or liquidation of the property owner to whom the credit was extended.
The bill directs the federal banking agencies to prescribe specified safety and soundness regulations, including minimum capital requirements, for any such institution or affiliate.
The bill permits the extension of such a lease beyond five years if any federal or State law, including the Bank Holding Company Act of 1956, so permits.
On May 20, 2009, Rep. Gary Miller introduced H.R. 2529, the Neighborhood Preservation Act. The bill proposes to address the persistence of foreclosures and unsold housing inventories. Specifically, the bill would temporarily permit a bank or mortgage servicer to enter into a long-term lease for properties acquired through foreclosure with an individual or the prior homeowner of a foreclosed property. Under the bill, the prior homeowner would have the option to lease the property with the choice to buy back the home.
The bill would also enable the lender to sell the property within five years into a more stable market, and thereby potentially recover all or part of the loss that would otherwise have occurred with an immediate sale in a saturated market.
The Congressional Budget Office estimates that enacting H.R. 2529, the Neighborhood Preservation Act, would have no significant net effect on direct spending and would not affect revenues.