HR 163 IH

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.

January 3, 2001

Mr. ROYCE (for himself, Mr. BENTSEN, Mr. MALONEY of Connecticut, Mr. JONES of North Carolina, Mr. SESSIONS, Mr. MEEKS of New York, Mr. SHERMAN, Mr. KANJORSKI, and Mrs. JONES of Ohio) introduced the following bill; which was referred to the Committee on Financial Services

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- Any servicer of federally related mortgage loans secured by first liens--

`(1) who is a debt collector; and

`(2) for whom the collection of delinquent debts is incidental to the servicer's primary function of servicing current federally related mortgage loans,

shall be exempt from the requirements of section 807(11) in connection with the collection of any debt which is a federally related mortgage loan secured by a first lien.

`(b) DEFINITIONS- For purposes of this section, the following definitions shall apply:

`(1) 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.

`(2) 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.'.

END