I 112th CONGRESS 1st Session H. R. 2191 IN THE HOUSE OF REPRESENTATIVES June 15, 2011 Mr. Clay (for himself, Mr. Lynch, Mr. Connolly of Virginia, Mr. Davis of Illinois, Mr. Braley of Iowa, Mr. Clarke of Michigan, Ms. Jackson Lee of Texas, Mr. Thompson of Mississippi, Mr. Richmond, Mr. Carson of Indiana, Ms. Bass of California, Mr. Payne, Mr. Fattah, Mr. Rush, Mr. Hastings of Florida, Mr. Cleaver, Mr. Butterfield, Ms. Lee of California, and Ms. Wilson of Florida) introduced the following bill; which was referred to the Committee on Financial Services 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 settlement statement of information regarding any home inspection conducted in connection with settlement.

1.

Short title

This Act may be cited as the Home Inspection Act of 2011.

2.

Home inspection requirement

(a)

Requirement

The Bureau of Consumer Financial Protection of the Federal Reserve System, shall 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.

3.

Inclusion of home inspection information in settlement form

Effective on the designated transfer date under section 1062 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111–203; 124 Stat. 2039), subsection (a) of section 4 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2603(a)), as amended by section 1098(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (124 Stat. 2103), is further amended— (1)by inserting (1) after (a); and (2)by adding at the end the following new paragraph: (2)The Bureau shall include in the forms 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 forms at the place where items relating to additional settlement charges (such as pest inspection charges) are located. .