[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4953 Introduced in House (IH)]

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 
                       mortgage 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 Representatives 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--
            (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 residential mortgage 
loan, nor any affiliate of such servicer, may own, or hold any interest 
in, any other residential mortgage 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 control with such servicer, 
        as the Board shall prescribe by regulation.
            ``(2) Residential mortgage loan.--The term `residential 
        mortgage loan' means any consumer credit transaction that is 
        secured by a mortgage, deed of trust, or other equivalent 
        consensual security interest on a dwelling or on residential 
        real property that includes a dwelling, other than a consumer 
        credit transaction under an open end credit plan or an 
        extension of credit relating to a plan described 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 residential 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 mortgage 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 residential 
        mortgage loan.''.
    (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 subsection (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.
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