108TH CONGRESS 
1ST SESSION 
H. R. 314 
AN ACT 
To amend the Fair Debt Collection Practices Act to 
exempt mortgage servicers from certain require-
ments of the Act with respect to federally related 
mortgage loans secured by a first lien, and for 
other purposes. 
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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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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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 Prac-
tices 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: 
‘‘§ 818. Mortgage servicer exemption 
‘‘(a) EXEMPTION.—A covered mortgage servicer who, 
whether by assignment, sale or transfer, becomes the per-
son 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— 
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‘‘(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, ex-
cept that, for purposes of this section, such term in-
cludes 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 Settle-
ment 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 
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(2) by inserting after the item relating to sec-
tion 817 the following new item: 
‘‘818. Mortgage servicer exemption.’’. 
Passed the House of Representatives March 19, 
2003. 
Attest: 
Clerk. 
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