[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 163 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 163

  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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 3, 2001

 Mr. Royce (for himself, Mr. Bentsen, Mr. Maloney of Connecticut, Mr. 
   Jones of North Carolina, Mr. Sessions, Mr. Meeks of New York, Mr. 
    Sherman, Mr. Kanjorski, and Mrs. Jones of Ohio) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
  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 Representatives of the 
United States of America in Congress assembled,

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 Practices 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:
``Sec. 818. Mortgage servicer exemption
    ``(a) Exemption.--Any servicer of federally related mortgage loans 
secured by first liens--
            ``(1) who is a debt collector; and
            ``(2) for whom the collection of delinquent debts is 
        incidental to the servicer's primary function of servicing 
        current federally related mortgage loans,
shall be exempt from the requirements of section 807(11) in connection 
with the collection of any debt which is a federally related mortgage 
loan secured by a first lien.
    ``(b) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) 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.
            ``(2) Servicer; servicing.--The terms `servicer' and 
        `servicing' have the meanings given to such terms in section 
        6(i) of the Real Estate Settlement 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
            (2) by inserting after the item relating to section 817 the 
        following new item:

``818. Mortgage servicer exemption.''.
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