Following is a brief summary and status of the Mortgage Servicing Clarification Act, a bill pending in the House to amend the Fair Debt Collection Practices Act (FDCPA), to exempt mortgage servicers from certain requirements of the Act with respect to federally related mortgage loans secured by first liens.

HR 163 would, among other things, amend the FDCPA to include the following 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) (15 U.S.C.A. [Section] 1692e) in connection with the collection of any debt which is a federally related mortgage loan secured by a first lien.

Legislative History:
Introduced: January 3, 2001
Referred to the House Committee on Financial Services: January 3, 2001
Referred to the Subcommittee on Financial Institutions and Consumer Credit: March 2, 2001

Introduced By:
Edward R. Royce

Cosponsors:
Ken Bentsen
Stephanie Tubbs Jones
Paul E. Kanjorski
Gregory W. Meeks
Brad Sherman
Charles A. Gonzalez
Walter B. Jones
James H. Maloney
Pete Sessions

Attached hereto are copies of HR 163, 15 U.S.C.A. § 1692e, 12 U.S.C.A. § 2605 (defining servicer and servicing) and 12 U.S.C.A. § 2602 (defining federally related mortgage loan).