[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2446 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 2446

To clarify the treatment of homeowner warranties under current law, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 7, 2011

Mrs. Biggert (for herself and Mr. Clay) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To clarify the treatment of homeowner warranties under current law, and 
                          for other purposes.

    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 ``RESPA Home Warranty Clarification 
Act of 2011''.

SEC. 2. TREATMENT OF HOMEOWNER WARRANTIES.

    Section 8 of the Real Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2607) is amended by adding at the end the following new 
subsection:
    ``(e) Homeowner Warranties.--
            ``(1) In general.--Nothing in this section, section 2, or 
        section 3 shall be deemed to include, or be deemed to have 
        included, homeowner warranties or similar residential service 
        contracts for the repair or replacement of home system 
        components or home appliances.
            ``(2) Notice.--Any person that pays another person not 
        employed by the person for selling, advertising, marketing, or 
        processing, or performing an inspection in connection with, a 
        homeowner warranty or similar residential service contract for 
        the repair or replacement of home system components or home 
        appliances shall include the following statement, in boldface 
        type that is 10-point or larger, in any such warranty or 
        contract offered or sold as an incident to or as part of any 
        transaction involving the origination of a federally related 
        mortgage loan:
                    ``NOTICE: THIS COMPANY MAY PAY PERSONS NOT EMPLOYED 
                BY THE COMPANY FOR SELLING, ADVERTISING, MARKETING, OR 
                PROCESSING, OR PERFORMING AN INSPECTION IN CONNECTION 
                WITH, A HOMEOWNER WARRANTY OR SIMILAR RESIDENTIAL 
                SERVICE CONTRACT FOR REPAIRING OR REPLACING HOME SYSTEM 
                COMPONENTS OR HOME APPLIANCES.''.
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