,i #aacth ,,congress #b;d ,session ,h4 ,r4 #ecif ,,in ,,the ,,house ,,of ,,representatives ,august #a1 #bjad ,ms4 ,michelle ,lujan ,grisham of ,new ,mexico introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to require servicers to establish a deed-for-lease program under which eligible mortgagors may remain in their homes as renters4 #a4 ,short title ,this ,act may be cited as the ,keeping ,families ,home ,act of #bjad4 #b4 ,deed-for-lease program 7a7 ,establishment 7#a7 ,in general ,each servicer shall establish a deed-for-lease program 7hereinafter referred to as the ,program71 which shall permit an eligible mortgagor to-- 7,a7 enter into a deed in lieu of foreclosure agreement2 7,b7 continue to occupy and lease the property that is the subject of such agreement for a #a-year period that begins on the date of such agreement2 and 7,c7 have a right of first refusal to purchase such property after the end of the #a-year lease period1 if the owner of the property intends to sell the property at that time4 7#b7 ,exception for small servicers ,the ,program requirement under paragraph 7#a7 shall not apply to a small servicer1 as such term is defined by the ,secretary of ,housing and ,urban ,development4 7b7 ,notice requirement ,servicers shall provide each eligible mortgagor with information about the ,program and how to apply to participate in the ,program4 7c7 ,lease terms ,a lease entered into by an eligible mortgagor under the ,program shall-- 7#a7 carry a monthly rent amount equal to the fair market rent for such property1 as determined by an independent private appraiser hired by and paid by the servicer2 and 7#b7 contain all typical lease provisions for similar rental property4 7d7 ,application process 7#a7 ,in general ,an eligible mortgagor may apply for the ,program at any time4 7#b7 ,effect of foreclosure sale ,if there is a foreclosure sale pending with respect to the property-- 7,a7 the eligible mortgagor may only apply for the ,program before the date that is #g days before the date of such foreclosure sale2 and 7,b7 once the eligible mortgagor applies for the ,program1 the foreclosure sale shall be halted until after the eligible mortgagor's ,program application has been evaluated4 7#c7 ,contents of application 7,a7 ,in general ,in applying for the ,program1 an eligible mortgagor shall provide the servicer with proof of the following information3 7i7 ,the eligible mortgagor is subject to a financial hardship that makes the eligible mortgagor unable to continue making timely payments on the eligible mortgage loan4 7ii7 ,the eligible mortgagor is eligible to pay the monthly rent amount described under subsection 7c77#a7 and such amount is no more than #ca percent of the eligible mortgagor's monthly income4 7iii7 ,the eligible mortgagor currently lives in the property and intends to continue doing so during the #a-year lease term4 7,b7 ,ability to pay higher percentage of income in rent ,notwithstanding subparagraph 7,a77ii71 if an eligible mortgagor believes they are able pay the monthly rent amount despite such amount exceeding #ca percent of the eligible mortgagor's monthly income1 the eligible mortgagor may request that the ,department of ,housing and ,urban ,development review their information1 along with any contributing factors the eligible mortgagor may have 7such as a low debt burden7 and1 if the ,department notifies the eligible mortgagor that the ,department agrees that the eligible mortgagor is able to pay a monthly rent amount that is equal to a percentage of their monthly income that is higher than #ca percent1 such higher percentage shall be used for purposes of subparagraph 7,a77ii74 7#d7 ,effect of junior liens ,if an eligible mortgagor applies for a ,program with respect to a single family property subject to a junior lien-- 7,a7 if the servicer of the ,program is also the holder of the junior lien1 the servicer shall release the junior lien and1 subject to the other requirements of this section1 the eligible mortgagor shall be eligible to participate in the ,program2 and 7,b7 if the servicer of the ,program is not the holder of the junior lien1 the servicer shall contact such junior lien holder and request that the holder release the lien1 and-- 7i7 if the holder releases the lien1 then1 subject to the other requirements of this section1 the eligible mortgagor shall be eligible to participate in the ,program2 and 7ii7 if the holder does not release the lien1 then the eligible mortgagor shall not be eligible to participate in the ,program4 7e7 ,evaluation and notification 7#a7 ,deadline for evaluation ,the servicer shall evaluate the eligible mortgagor's application within #cj days of receiving such application and shall accept an eligible mortgagor into the ,program if the eligible mortgagor has provided the proof described under subsection 7d77#c77;,a74 7#b7 ,notification ,promptly after making a determination under paragraph 7#a71 the servicer shall notify the eligible mortgagor of such determination in writing and1 if the servicer determines that the eligible mortgagor may not be accepted into the ,program1 the servicer shall specifically explain in writing why the eligible mortgage was not accepted4 7f7 ,subsequent owners follow ,program requirements ,any subsequent owner of the property being leased pursuant to the ,program shall-- 7#a7 maintain the ,program and abide by the terms of the ,program to the same extent as the servicer of the eligible mortgage2 and 7#b7 certify to the ,department of ,housing and ,urban ,development1 before finalizing any purchase of the property1 that they will abide by the terms of the ,program4 7g7 ,rulemaking2 compliance evaluation ,the ,department of ,housing and ,urban ,development shall-- 7#a7 issue such regulations as may be necessary to carry out this section2 7#b7 evaluate the compliance by servicers and owners with the requirements of this section2 and 7#c7 enforce the requirements of this section4 7h7 ,definitions ,for purposes of this section3 7#a7 ,eligible mortgagor ,the term eligible mortgagor means a mortgagor under an eligible mortgage4 7#b7 ,eligible mortgage ,the term eligible mortgage means a first or subordinate mortgage on a property that-- 7,a7 is a single family property2 and 7,b7 is currently being used as the principal residence of the eligible mortgagor4 7#c7 ,single family property ,the term single family property means-- 7,a7 a structure consisting of #a to #d dwelling units2 7,b7 a dwelling unit in a multi-unit condominium property together with an undivided interest in the common areas and facilities serving the property2 7,c7 a dwelling unit in a multi-unit project for which purchase of stock or a membership interest entitles the purchaser to permanent occupancy of that unit2 or 7,d7 a manufactured housing unit4