108TH CONGRESS 

1ST SESSION H. R. 314 

AN ACT 

To amend the Fair Debt Collection Practices Act to 

other purposes. mortgage loans secured by a first lien, and for ments of the Act with respect to federally related exempt mortgage servicers from certain requireVerDate Aug 31 2005 10:17 Apr 26, 2006 Jkt 049200 PO 00000 Frm 00001 Fmt 6651 Sfmt 6651 E:\PICKUP\H314.EH H314

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108TH CONGRESS 

1ST SESSION H. R. 314 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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•HR 314 EH 

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Mortgage Servicing 

3 Clarification Act’’. 

4 SEC. 2. MORTGAGE SERVICING CLARIFICATION. 

5 (a) IN GENERAL.—The Fair Debt Collection Prac6 tices Act (15 U.S.C. 1692 et seq.) is amended— 

7 (1) by redesignating section 818 as section 819; 

8 and 

9 (2) by inserting after section 817 the following 

10 new section: 

11 ‘‘§ 818. Mortgage servicer exemption 

12 ‘‘(a) EXEMPTION.—A covered mortgage servicer who, 

13 whether by assignment, sale or transfer, becomes the per14 son responsible for servicing federally related mortgage 

15 loans secured by first liens that include loans that were 

16 in default at the time such person became responsible for 

17 the servicing of such federally related mortgage loans shall 

18 be exempt from the requirements of section 807(11) in 

19 connection with the collection of any debt arising from 

20 such defaulted federally related mortgage loans. 

21 ‘‘(b) DEFINITIONS.—For purposes of this section, the 

22 following definitions shall apply: 

23 ‘‘(1) COVERED MORTGAGE SERVICER.—The 

24 term ‘covered mortgage servicer’ means any servicer 

25 of federally related mortgage loans secureded by 

26 first liens— 


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•HR 314 EH 

1 ‘‘(A) who is also debt collector; and 

2 ‘‘(B) for whom the collection of delinquent 

3 debts is incidental to thehe servicer’s primary 

4 function of servicing current federally related 

5 mortgageege loans. 

6 ‘‘(2) FEDERALLY RELATED MORTGAGE LOAN.— 

7 The term ‘federally related mortgage loan’ has the 

8 meaning given to such term in section 3(1) of the 

9 Real Estate Settlement Procedures Act of 1974, ex10 cept that, for purposes of this section, such term in11 cludes only loans secured by first liens. 

12 ‘‘(3) PERSON.—The term ‘person’ has the 

13 meaning given to such term in section 3(5) of the 

14 Real Estate Settlement Procedures Act of 1974. 

15 ‘‘(4) SERVICER; SERVICING.—The terms 

16 ‘servicer’ and ‘servicing’ have the meanings given to 

17 such terms in section 6(i) of the Real Estate Settle18 ment Procedures Act of 1974.’’. 

19 (b) CLERICAL AMENDMENT.—The table of sections 

20 for the Fair Debt Collection Practices Act (15 U.S.C. 

21 1692 et seq.) is amended— 

22 (1) by redesignating the item relating to section 

23 818 as section 819; and 


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•HR 314 EH 

1 (2) by inserting after the item relating to sec2 tion 817 the following new item: 

‘‘818. Mortgage servicer exemption.’’. 

Passed the House of Representatives March 19, 

2003. 

Attest: 

Clerk. 


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