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 mort-
gage 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Mortgage Servicing 
Conflict Elimination Act of 2010’’. 
SEC. 2. LIMITATION ON MORTGAGES HELD BY LOAN 
SERVICERS. 
(a) LIMITATION.—Chapter 2 of the Truth in Lending 
Act (15 U.S.C. 1631 et seq.) is amended— 
VerDate Nov 24 2008 
01:40 Mar 27, 2010
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4953.IH
H4953
tjames on DSKG8SOYB1PROD with BILLS
(1) by redesignating the second section 129, as 
added by section 201(b) of the Helping Families 
Save Their Homes Act of 2009 (Public Law 111–22; 
123 Stat. 1638), as section 129A; and 
(2) by inserting before section 130 (15 U.S.C. 
1640) the following new section: 
‘‘SEC. 129B. LIMITATION ON MORTGAGES HELD BY LOAN 
SERVICERS. 
‘‘(a) LIMITATION.—Neither the servicer of a residen-
tial mortgage loan, nor any affiliate of such servicer, may 
own, or hold any interest in, any other residential mort-
gage loan that is secured by a mortgage, deed of trust, 
or other equivalent consensual security interest on the 
same dwelling or residential real property that is subject 
to the mortgage, deed of trust, or other security interest 
that secures the residential mortgage loan serviced by the 
servicer. 
‘‘(b) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) AFFILIATE.—The term ‘affiliate’ means, 
with respect to a servicer, any person or entity that 
controls, is controlled by, or is under common con-
trol with such servicer, as the Board shall prescribe 
by regulation. 
VerDate Nov 24 2008 
01:40 Mar 27, 2010
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4953.IH
H4953
tjames on DSKG8SOYB1PROD with BILLS
‘‘(2) RESIDENTIAL
MORTGAGE
LOAN.—The 
term ‘residential mortgage loan’ means any con-
sumer credit transaction that is secured by a mort-
gage, deed of trust, or other equivalent consensual 
security interest on a dwelling or on residential real 
property that includes a dwelling, other than a con-
sumer credit transaction under an open end credit 
plan or an extension of credit relating to a plan de-
scribed in section 101(53D) of title 11, United 
States Code. 
‘‘(3) SERVICER.—The term ‘servicer’ has the 
meaning provided in section 129A, except that such 
term includes a person who makes or holds a resi-
dential mortgage loan (including a pool of residential 
mortgage loans) if such person also services the 
loan. 
‘‘(c) INTERESTS.—For purposes of subsection (a), 
ownership of, or holding an interest in a residential mort-
gage loan includes ownership of, or holding an interest 
in— 
‘‘(1) a pool of residential mortgage loans that 
contains such residential mortgage loan; or 
‘‘(2) any security based on or backed by a pool 
of residential mortgage loans that contains such res-
idential mortgage loan.’’. 
VerDate Nov 24 2008 
01:40 Mar 27, 2010
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4953.IH
H4953
tjames on DSKG8SOYB1PROD with BILLS
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 2 of the Truth in Lending Act is amended 
by inserting before the item relating to section 130 the 
following new item: 
‘‘Sec. 129B. Limitation on mortgages held by loan servicers.’’. 
(c) APPLICABILITY.—The amendment made by sub-
section (a) shall apply— 
(1) with respect to the servicer (or affiliate of 
the servicer) of a residential mortgage loan that is 
originated after the date of the enactment of this 
Act, on such date of enactment; and 
(2) with respect to the servicer (or affiliate of 
the servicer) of a residential mortgage loan that is 
originated on or before the date of the enactment of 
this Act, upon the expiration of the 12-month period 
beginning upon such date of enactment. 
Æ 
VerDate Nov 24 2008 
01:40 Mar 27, 2010
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H4953.IH
H4953
tjames on DSKG8SOYB1PROD with BILLS