109 HR 1025 IH: Mortgage Servicing Clarification Act U.S. House of Representatives 2005-03-01 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 1st Session H. R. 1025 IN THE HOUSE OF REPRESENTATIVES March 1, 2005 Mr. Royce (for himself, Mr. Kanjorski, Mr. Ney, Mrs. Maloney, Mr. Jones of North Carolina, Mr. Sherman, Mr. Paul, Mr. Meeks of New York, and Mrs. Jones of Ohio) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Fair Debt Collection Practices Act to exempt mortgage servicers from certain requirements of the Act with respect to federally related mortgage loans secured by a first lien, and for other purposes.

1.

Short title

This Act may be cited as the Mortgage Servicing Clarification Act.

2.

Mortgage servicing clarification

(a)

In general

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.) is amended— (1)by redesignating section 818 as section 819; and (2)by inserting after section 817 the following new section:

818.

Mortgage servicer exemption

(a)

Exemption

A covered mortgage servicer who, whether by assignment, sale or transfer, becomes the person responsible for servicing federally related mortgage loans secured by first liens that include loans that were in default at the time such person became responsible for the servicing of such federally related mortgage loans shall be exempt from the requirements of section 807(11) in connection with the collection of any debt arising from such defaulted federally related mortgage loans. (b)

Definitions

For purposes of this section, the following definitions shall apply: (1)

Covered mortgage servicer

The term covered mortgage servicer means any servicer of federally related mortgage loans secured by first liens— (A)who is also debt collector; and (B)for whom the collection of delinquent debts is incidental to the servicer’s primary function of servicing current federally related mortgage loans. (2)

Federally related mortgage loan

The term federally related mortgage loan has the meaning given to such term in section 3(1) of the Real Estate Settlement Procedures Act of 1974, except that, for purposes of this section, such term includes only loans secured by first liens. (3)

Person

The term person has the meaning given to such term in section 3(5) of the Real Estate Settlement Procedures Act of 1974. (4)

Servicer; servicing

The terms servicer and servicing have the meanings given to such terms in section 6(i) of the Real Estate Settlement Procedures Act of 1974.

. (b)

Clerical amendment

The table of sections for the Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.) is amended— (1)by redesignating the item relating to section 818 as section 819; and (2)by inserting after the item relating to section 817 the following new item: 818. Mortgage servicer exemption.