[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 460 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 460

 To amend the Housing Act of 1949 to provide for private servicing of 
        rural housing loans made under section 502 of such Act.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 21, 1997

  Mr. Condit introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend the Housing Act of 1949 to provide for private servicing of 
        rural housing loans made under section 502 of such Act.

    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 ``Rural Housing Loan Servicing 
Privatization Act''.

SEC. 2. REQUIREMENT TO TRANSFER SERVICING OF SECTION 502 LOANS.

    Section 502 of the Housing Act of 1949 (42 U.S.C. 1473) is amended 
by adding at the end the following new subsection:
    ``(i) Transfer of Loan Servicing.--The Secretary shall enter into 
contracts under section 510(k) providing for the servicing of all loans 
made by the Secretary under this section, to the extent entities 
qualified and experienced in conducting loan servicing for residential 
mortgage loans are available and agree to enter into such contracts.''.

SEC. 3. ADMINISTRATIVE PROVISIONS.

    Section 510 of the Housing Act of 1949 (42 U.S.C. 1480) is 
amended--
            (1) in subsection (j), by striking ``and'' at the end;
            (2) by redesignating subsection (k) as subsection (l); and
            (3) by inserting after subsection (j) the following new 
        subsection:
            ``(k) enter into contracts (having such provisions as the 
        Secretary considers appropriate) with entities qualified and 
        experienced in conducting loan servicing for residential 
        mortgage loans to conduct the servicing for loans made by the 
        Secretary under this title, which shall provide for such 
        entities to receive scheduled periodic payments from borrowers 
        pursuant to the terms of loans, including amounts for any 
        escrow accounts, and making payments of principal and interest 
        and such other payments with respect to the amounts received 
        from borrowers as may be required pursuant to the terms of 
        loans and may provide for such entities to retain a fee for 
        servicing from loan payment amounts received; and''.
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