I 

111TH CONGRESS 

2D SESSION H. R. 4953 

To amend the Truth in Lending Act to prohibit the servicer of a home 

mortgage, or any affiliate of the servicer, from holding any other mortgage on the property. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 25, 2010 

Mr. MILLER of North Carolina (for himself and Mr. ELLISON) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Truth in Lending Act to prohibit the servicer 

of a home mortgage, or any affiliate of the servicer, 

from holding any other mortgage on the property. 

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

3 SECTION 1. SHORT TITLE. 

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

5 Conflict Elimination Act of 2010’’. 

6 SEC. 2. LIMITATION ON MORTGAGES HELD BY LOAN 

7 SERVICERS. 

8 (a) LIMITATION.—Chapter 2 of the Truth in Lending 

9 Act (15 U.S.C. 1631 et seq.) is amended— 


tjames on DSKG8SOYB1PROD with BILLS
2 

•HR 4953 IH

1 (1) by redesignating the second section 129, as 

2 added by section 201(b) of the Helping Families 

3 Save Their Homes Act of 2009 (Public Law 111–22; 

4 123 Stat. 1638), as section 129A; and 

5 (2) by inserting before section 130 (15 U.S.C. 

6 1640) the following new section: 

7 ‘‘SEC. 129B. LIMITATION ON MORTGAGES HELD BY LOAN 

8 SERVICERS. 

9 ‘‘(a) LIMITATION.—Neither the servicer of a residen10 tial mortgage loan, nor any affiliate of such servicer, may 

11 own, or hold any interest in, any other residential mort12 gage loan that is secured by a mortgage, deed of trust, 

13 or other equivalent consensual security interest on the 

14 same dwelling or residential real property that is subject 

15 to the mortgage, deed of trust, or other security interest 

16 that secures the residential mortgage loan serviced by the 

17 servicer. 

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

19 following definitions shall apply: 

20 ‘‘(1) AFFILIATE.—The term ‘affiliate’ means, 

21 with respect to a servicer, any person or entity that 

22 controls, is controlled by, or is under common con23 trol with such servicer, as the Board shall prescribe 

24 by regulation. 


tjames on DSKG8SOYB1PROD with BILLS
3 

•HR 4953 IH

1 ‘‘(2) RESIDENTIAL MORTGAGE LOAN.—The 

2 term ‘residential mortgage loan’ means any con3 sumer credit transaction that is secured by a mort4 gage, deed of trust, or other equivalent consensual 

5 security interest on a dwelling or on residential real 

6 property that includes a dwelling, other than a con7 sumer credit transaction under an open end credit 

8 plan or an extension of credit relating to a plan de9 scribed in section 101(53D) of title 11, United 

10 States Code. 

11 ‘‘(3) SERVICER.—The term ‘servicer’ has the 

12 meaning provided in section 129A, except that such 

13 term includes a person who makes or holds a resi14 dential mortgage loan (including a pool of residential 

15 mortgage loans) if such person also services the 

16 loan. 

17 ‘‘(c) INTERESTS.—For purposes of subsection (a), 

18 ownership of, or holding an interest in a residential mort19 gage loan includes ownership of, or holding an interest 

20 in— 

21 ‘‘(1) a pool of residential mortgage loans that 

22 contains such residential mortgage loan; or 

23 ‘‘(2) any security based on or backed by a pool 

24 of residential mortgage loans that contains such res25 idential mortgage loan.’’. 


tjames on DSKG8SOYB1PROD with BILLS
4 

•HR 4953 IH

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

2 for chapter 2 of the Truth in Lending Act is amended 

3 by inserting before the item relating to section 130 the 

4 following new item: 

‘‘Sec. 129B. Limitation on mortgages held by loan servicers.’’. 

5 (c) APPLICABILITY.—The amendment made by sub6 section (a) shall apply— 

7 (1) with respect to the servicer (or affiliate of 

8 the servicer) of a residential mortgage loan that is 

9 originated after the date of the enactment of this 

10 Act, on such date of enactment; and 

11 (2) with respect to the servicer (or affiliate of 

12 the servicer) of a residential mortgage loan that is 

13 originated on or before the date of the enactment of 

14 this Act, upon the expiration of the 12-month period 

15 beginning upon such date of enactment. 

Æ 


tjames on DSKG8SOYB1PROD with BILLS