[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4854 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4854

  To require that any home inspection conducted in connection with a 
purchase of residential real property that involves a federally related 
mortgage loan be conducted by a State-licensed or State-certified home 
  inspector to determine the existence of structural, mechanical, and 
  electrical safety defects, and to require inclusion in the standard 
HUD-1 settlement statement of information regarding any home inspection 
                conducted in connection with settlement.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 2010

   Mr. Clay introduced the following bill; which was referred to the 
                    Committee on Financial Services

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                                 A BILL


 
  To require that any home inspection conducted in connection with a 
purchase of residential real property that involves a federally related 
mortgage loan be conducted by a State-licensed or State-certified home 
  inspector to determine the existence of structural, mechanical, and 
  electrical safety defects, and to require inclusion in the standard 
HUD-1 settlement statement of information regarding any home inspection 
                conducted in connection with settlement.

    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 ``Home Inspection Act of 2010''.

SEC. 2. HOME INSPECTION REQUIREMENT.

    (a) Requirement.--The Federal banking agencies (as such term is 
defined in section 103(cc) of the Truth in Lending Act (15 U.S.C. 
1602(cc))), in consultation with the Secretary of Housing and Urban 
Development, the Federal Trade Commission, and any Federal agency or 
commission established by law to regulate the provision of consumer 
financial products or services, shall jointly prescribe regulations to 
prohibit any lender from making any federally related mortgage loan (as 
such term is defined in section 3 of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2602)) under which a home inspection 
is conducted in connection with settlement of the mortgage loan unless 
such inspection is conducted by a home inspector who is licensed, 
certified, approved, or otherwise regulated by the home State of the 
inspector or the State in which the real property is located.
    (b) Enforcement.--Compliance with the requirements imposed pursuant 
to subsection (a) of this section shall be enforced in the same manner 
as provided under section 108 of the Truth in Lending Act (15 U.S.C. 
1607) for enforcement of the requirements under such Act.

SEC. 3. INCLUSION OF HOME INSPECTION INFORMATION IN HUD-1 SETTLEMENT 
              FORM.

    (a) In General.--Subsection (a) of section 4 of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2603(a)) is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Secretary shall include in the standard form an item for 
identifying any home inspection conducted in connection with the 
settlement, when such inspection was or is to be completed, the cost of 
the inspection, whether the charge for such inspection is imposed on 
the borrower or the seller, and whether such charge has been paid 
before settlement and a copy of the receipt of payment for the 
inspection is included with the settlement documents. Such item shall 
be included in the form at the place where items relating to additional 
settlement charges (such as pest inspection charges) are located.''.
    (b) Regulations.--Not later than the expiration of the [--]-day 
period beginning on the date of the enactment of this Act, the 
Secretary of Housing and Urban Development shall issue regulations 
implementing the amendments made by subsection (a) and revising the 
standard real estate settlement form required under section 4 of the 
Real Estate Settlement Procedures Act of 1974 in accordance with such 
amendments.
                                 <all>