UNITED STATES OF AMERICA
August 30, 1996
Mr. David C. Farmer
Dear Mr. Farmer:
This is in reply to your recent letter concerning a situation where a loan, originally made by a mortgage servicing company is assigned to another party, but the servicer continues to service the loan on behalf of the assignee. You ask whether the servicing company is covered by the Fair Debt Collection Practices Act (FDCPA) (copy enclosed) when the loan goes into default and the company sends a dunning letter to the borrower.
Section 803(6)(F)(ii) of the FDCPA exempts from the definition of debtor persons attempting to collect debts and others to the extent that the collection activity "...(ii) concerns a debt which was originated by such person." It appears that this is the situation you describe. If so, the servicing company appears to be exempt from coverage of the Act.
I hope this is responsive to your inquiry.
John F. LeFevre