A bill introduced in Congress aims to eliminate the conflict of interest that occurs when big mortgage servicers play a dual role of servicing a delinquent primary mortgage owned by another institution, while also owning a second mortgage or home equity line of credit on the same property. The conflict of interest arises because the servicer has an interest in making sure it has paid for the second lien, while the first loan owned by the other institution goes into delinquency. The Mortgage Servicing Conflict of Interest Elimination Act, introduced by Rep. Brad Miller, D-N.C., aims to fix that.

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