[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 314 Referred in Senate (RFS)]
1st Session
H. R. 314
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 20, 2003
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Mortgage Servicing Clarification
Act''.
SEC. 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:
``Sec. 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 secureded by first liens--
``(A) who is also debt collector; and
``(B) for whom the collection of delinquent debts
is incidental to thehe servicer's primary function of
servicing current federally related mortgageege 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.''.
Passed the House of Representatives March 19, 2003.
Attest:
JEFF TRANDAHL,
Clerk.