[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1025 Referred in Senate (RFS)]

  1st Session
                                H. R. 1025


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 7, 2005

Received; read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 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 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.--A covered mortgage servicer who, whether by 
assignment, sale or transfer, becomes the person 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 secured by first liens--
                    ``(A) who is also a debt collector; and
                    ``(B) for whom the collection of delinquent debts 
                is incidental to the servicer's primary function of 
                servicing current federally related mortgage 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, except that, for purposes of this section, such term 
        includes 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 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.''.

            Passed the House of Representatives April 6, 2005.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.