H5612 CONGRESSIONAL RECORD — HOUSE August 1, 2012 

this thing work. A lot of people have 

interest in Alaska and in trying to 

clean the beaches after it arrives, and 

we’re trying to get more people interested in cleaning the ocean up before it 

does arrive. Hopefully, it will work together. 

With that, I reserve the balance of 

my time. 

Mr. LARSEN of Washington. I have 

no more speakers, and I yield back the 

balance of my time. 

Mr. YOUNG of Alaska. I have no 

more speakers, so I yield back the balance of my time. 

Ms. BORDALLO. Mr. Speaker, I rise today 

in strong support of H.R. 1171, the Marine Debris Act Amendments of 2012. I want to commend my colleague and friend Congressman 

SAM FARR from California for introducing this 

legislation and continually working for its passage. As a member of the Subcommittee on Fisheries, Wildlife and Oceans, one of my top priorities was to take action on legislation to address our nation’s ocean environment. I am 

pleased to say that this legislation, H.R. 1171, 

would continue to combat the adverse impacts 

of marine debris on the United States economy, the marine environment, and navigation 

safety through identification, determination of 

sources, assessment, prevention, reduction, 

and removal of marine debris. 

This legislation will reauthorize NOAA’s existing Marine Debris Program to support important projects throughout the country, including beach cleanups, derelict fishing gear location and removal, and educational campaigns. 

The program helps to identify, determine 

sources of, assess, prevent, reduce, and remove marine debris, with a focus on marine 

debris posing a threat to living marine resources and navigation safety. This reauthorizing language would serve to streamline 

these programs by avoiding any overlaps or 

conflicts with other federal agencies. The legislation would help protect the environment and the economy of coastal communities throughout the Nation. Earlier this year, 

tsunami debris washed ashore the coasts of 

Oregon and Washington, calling attention to 

the need for a comprehensive plan to coordinate clean-up efforts. Indeed, the impacts of 

the March 2011 tsunami in Japan will continue 

to impact our shores over the coming months 

and years and this bill gives us the tools to respond to this situation. In particular, Guam 

would greatly benefit from the passage of the 

Marine Debris Act Amendments of 2012 as it 

would give states and local communities the 

additional tools needed to effectively care for 

our marine environments and wildlife. 

Again, I applaud Representative FARR for introducing this legislation. I thank Chairman 

MICA, Chairman HASTINGS, Ranking Member 

RAHALL and Ranking Member MARKEY for their 

leadership in bringing this important bill which 

enhances our understanding of the marine environment to the House floor. I encourage my 

colleagues to continue supporting this important legislation that addresses one of the most 

serious threats to our oceans today. The SPEAKER pro tempore. The 

question is on the motion offered by 

the gentleman from Alaska (Mr. 

YOUNG) that the House suspend the 

rules and pass the bill, H.R. 1171, as 

amended. 

The question was taken; and (twothirds being in the affirmative) the 

rules were suspended and the bill, as 

amended, was passed. 

A motion to reconsider was laid on 

the table. 

RESPA HOME WARRANTY 

CLARIFICATION ACT OF 2011 

Mrs. BIGGERT. Mr. Speaker, I move 

to suspend the rules and pass the bill 

(H.R. 2446) to clarify the treatment of 

homeowner warranties under current 

law, and for other purposes, as amended. 

The Clerk read the title of the bill. 

The text of the bill is as follows: 

H.R. 2446 

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 2012’’. 

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 BY HOME WARRANTY COMPANY.— 

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.’ 

‘‘(3) NOTICE BY REAL ESTATE AGENT OR

BROKER.—Any person who has contracted to receive payment from a provider of the services described in paragraph (1) for recommending the 

purchase of a home warranty or similar residential service contract, and is not an employee of 

such provider, shall provide the potential purchaser, upon first recommending the purchase 

of a homeowner warranty or similar residential 

service contract, a written notice containing the 

following language in boldface type that is 10- 

point or larger (with the bracketed matter being 

replaced with the information described by such 

bracketed matter): 

‘‘‘NOTICE: THIS IS TO GIVE YOU NOTICE 

THAT [the provider of the notice] HAS RECEIVED OR WILL RECEIVE COMPENSATION FROM [the home warranty company] 

FOR [the residential service for which the notice 

provider is being compensated]. YOU ARE NOT 

REQUIRED TO PURCHASE A HOME WARRANTY OR A SIMILAR RESIDENTIAL SERVICE CONTRACT AND IF YOU CHOOSE TO 

PURCHASE SUCH COVERAGE YOU ARE 

FREE TO PURCHASE IT FROM ANOTHER 

PROVIDER’.’’. 

The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 

Illinois (Mrs. BIGGERT) and the gentleman from Georgia (Mr. DAVID

SCOTT) each will control 20 minutes. 

The Chair recognizes the gentlewoman from Illinois. 

GENERAL LEAVE

Mrs. BIGGERT. Mr. Speaker, I ask 

unanimous consent that all Members 

may have 5 legislative days in which to 

revise and extend their remarks and 

add extraneous material on this bill. 

The SPEAKER pro tempore. Is there 

objection to the request of the gentlewoman from Illinois? 

There was no objection. 

Mrs. BIGGERT. Mr. Speaker, I yield 

myself such time as I may consume. 

I rise in support of H.R. 2446, the 

RESPA Home Warranty Clarification 

Act, and urge my colleagues to support 

the bill. H.R. 2446 is a bipartisan bill 

that Mr. CLAY of Missouri and I introduced last year. The bill has 40 cosponsors, including 13 Democrats and 27 Republicans, and I thank the gentleman 

from Georgia (Mr. SCOTT) for managing 

this bill. 

On March 27, the Financial Services 

Committee reported out the bill by 

voice vote. The RESPA Home Warranty Clarification Act would amend 

the Real Estate Settlement Procedures 

Act of 1974, or RESPA, to clarify that, 

as long as a consumer or borrower receives specific disclosures about it, a 

fee paid to a real estate broker or 

agent related to the sale of a home 

warranty is not a RESPA violation. 

When Congress passed RESPA in 1974, 

it intended for the law to provide consumers or borrowers with timely disclosures related to the cost of real estate settlement services. Title insurance, a flood elevation certificate and 

homeowners insurance are a few examples of services required at a mortgage 

settlement. Unlike these settlement 

services, a home warranty is not a required service. For a borrower or a consumer, the purchase of a home warranty is optional. It is a service contract under which a home warranty 

company provides repair or replacement coverage for a home’s system 

components and/or appliances. A real 

estate broker or agent typically acts as 

a representative for the home warranty 

company that offers the home warranty, and the real estate broker or 

agent receives a commission from the 

home warranty company for presenting 

the home warranty to the home buyer 

if the homeowner chooses to purchase 

the warranty. 

Congress originally delegated RESPA 

rulemaking and enforcement authority 

to the U.S. Department of Housing and 

Urban Development, HUD. For nearly 

20 years, from 1974 to 1992, HUD issued 

no rules or guidance related to the sale 

of a home warranty by a real estate 

broker or agent. 

b 2010 

In 1992, HUD issued regulations adding homeowners warranties as a settlement service, but was silent on the 

matter until recent years. Citing evidence to demonstrate a problem with 

home warranty-related sale practices, 

commission arrangements, disclosures, 

or the product itself between 2008 and 

2010, HUD issued an unofficial staff interpretive rule and the subsequent 

guidance. In short, after 34 years, with 

no apparent problem with a product 

that is not required for closing, HUD 

determined that, under RESPA, it is a 

violation for a real estate broker or an 

agent to be compensated by a home 

warranty company for offering a home 

warranty to a borrower in connection 

with the real estate transaction. 


smartinez on DSK6SPTVN1PROD with HOUSE
August 1, 2012 CONGRESSIONAL RECORD — HOUSE H5613 

Mr. Speaker, HUD clearly is seeking 

to create a solution where there simply 

is no problem. HUD’s unfounded interpretation doesn’t follow the letter of 

the law as intended by Congress. According to witness testimony received 

by the Financial Services Subcommittee on Insurance, Housing and 

Community Opportunity, this misinterpretation of law has resulted in 

unnecessarily disrupting longstanding 

business practices that could increase 

the costs and decrease the availability 

of home warranties to consumers, as 

well as unintentionally harm small 

businesses. H.R. 2446 would clarify 

longstanding law and practice while restoring certainty related to home warranties in the real estate marketplace. 

I’d like to thank my colleague, Mr. 

CLAY, for working with me on this bill, 

and I’d like to thank the gentleman 

from Georgia for managing this bill. I’d 

also like to thank the bill’s 40 bipartisan cosponsors from across the country. 

I urge my colleagues to support H.R. 

2446, and I reserve the balance of my 

time. 

Mr. DAVID SCOTT of Georgia. Mr. 

Speaker, I yield myself such time as I 

may consume. 

I rise today to encourage all of my 

colleagues to vote in favor of H.R. 2446, 

the RESPA Home Warranty Clarification Act. 

Before I explain exactly why this legislation is so important and vital, let 

me first take a moment to thank my 

friend and colleague, and my fellow Financial Services Committee member 

and the sponsor of this legislation, 

Mrs. BIGGERT, for her hard work on 

this bill. The fact that this bill passed 

both subcommittee and full committee 

by voice vote is a testament to not 

only the issue’s importance, but also to 

Mrs. BIGGERT’s dedication and openness in alleviating Members’ concerns. 

Regarding the bill, itself, Mr. Speaker, this legislation will help small businesses. It will help real estate professionals. Most importantly, it will help 

homeowners by clarifying the law on 

the sale of home warranties. 

Congress enacted legislation many 

years ago to outlaw kickbacks paid in 

connection with services that must be 

performed to close a federally-related 

mortgage loan. An interpretive rule released by the Department of Housing 

and Urban Development has, unfortunately, created uncertainty about application of the law to home warranties 

which are not necessary to close a loan 

to purchase a home. To eliminate confusion and reduce uncertainty, our bill 

makes clear that the term ‘‘settlement 

services’’ does not include home warranties. 

This legislation also provides new notice requirements applicable to home 

service contract companies and to real 

estate professionals so that prospective 

purchasers of home warranties are 

aware that a payment may have been 

made in connection with the selling, 

advertising, marketing, processing, or 

performing an inspection in connection 

with the home warranty. 

This simple clarification will allow 

members of the home warranty industry to pay modest sums to real estate 

professionals for direct marketing and 

related services in connection with the 

sale of a home warranty without a risk 

of running afoul of a law Congress 

never intended to be applicable for a 

completely optional product. 

This is the simplification of this law 

that is very important. It’s very simple, but it’s very important so that our 

real estate industry and home mortgage industry can move more smoothly. 

Please join me in voting for this commonsense legislation that will benefit 

consumers and the small businesses 

that repair and replace home systems 

covered by home warranties. 

With that, Mr. Speaker, I reserve the 

balance of my time. 

Mrs. BIGGERT. Mr. Speaker, I have 

no further requests for time if the gentleman is ready to close. 

Mr. DAVID SCOTT of Georgia. Likewise, I’m ready to close. 

I just want to say in closing that, 

again, Mrs. BIGGERT has done a wonderful job on this, Mr. Speaker, and should 

be commended for it. This is a very important and simple piece of legislation, 

but it will help to iron out and smooth 

out confusion and allow for our real estate and our housing and our home 

mortgage industry to move more 

smoothly. I urge all of my colleagues 

to vote for it. 

With that, I yield back the balance of 

my time. 

Mrs. BIGGERT. Mr. Speaker, I encourage all of my colleagues to support 

this bill, as amended, and I yield back 

the balance of my time. 

Mr. HINOJOSA. Mr. Speaker, I rise today in 

support of H.R. 2446, ‘‘The RESPA Home 

Warranty Clarification Act.’’ The Real Estate 

Settlement Procedures Act of 1974, or 

RESPA, was crafted by Congress to only 

cover those services necessary for closing the 

transaction of buying a home. A recent interpretive rule issued by the Department of 

Housing and Urban Development broke this 

precedent by bringing home warranties under 

RESPA. This bipartisan act clarifies that home 

warranties fall outside the scope of RESPA 

because they are unnecessary for closing. 

This bill was passed out of the Financial 

Services Committee on voice vote, and I am 

proud that the Committee also passed an 

amendment that I offered, which adds even 

more transparency to the bill. 

This amended bill would require the real estate broker who recommends the purchase of 

a home warranty to a homebuyer to disclose 

that he or she may receive compensation for 

the recommendation; that the homebuyer is 

not required to purchase a home warranty 

contract; and that the homebuyer can purchase a home warranty contract from a provider not recommended by the real estate 

broker. 

This is is essential information for the homebuyer to make an informed choice when deciding whether to purchase a home warranty 

and I am proud to have added this disclosure 

requirement to H.R. 2446. This bill makes 

clear that the term ‘‘settlement service’’ in 

RESPA does not include home warranties, 

something Congress never intended. 

The SPEAKER pro tempore. The 

question is on the motion offered by 

the gentlewoman from Illinois (Mrs. 

BIGGERT) that the House suspend the 

rules and pass the bill, H.R. 2446, as 

amended. 

The question was taken; and (twothirds being in the affirmative) the 

rules were suspended and the bill, as 

amended, was passed. 

A motion to reconsider was laid on 

the table. 

f 

PROVIDING FOR USE OF NATIONAL INFANTRY MUSEUM AND 

SOLDIER CENTER COMMEMORATIVE COIN SURCHARGES 

Mr. DOLD. Mr. Speaker, I ask unanimous consent to take from the Speaker’s table the bill (S. 3363) to provide 

for the use of National Infantry Museum and Soldier Center Commemorative Coin surcharges, and for other purposes, and ask for its immediate consideration in the House. 

The Clerk read the title of the bill. 

The SPEAKER pro tempore. Is there 

objection to the request of the gentleman from Illinois? 

There was no objection. 

The text of the bill is as follows: 

S. 3363 

Be it enacted by the Senate and House of 

Representatives of the United States of 

America in Congress assembled, 

SECTION 1. NATIONAL INFANTRY MUSEUM AND 

SOLDIER CENTER COMMEMORATIVE 

COIN SURCHARGES. 

Section 6(b) of the National Infantry Museum and Soldier Center Commemorative 

Coin Act (Public Law 110–357, 122 Stat. 3999) 

is amended by inserting before the period at 

the end the following: ‘‘, and for the retirement of debt associated with building the existing National Infantry Museum and Soldier 

Center’’. 

The bill was ordered to be read a 

third time, was read the third time, 

and passed, and a motion to reconsider 

was laid on the table. 

f 

MARCH OF DIMES COMMEMORATIVE COIN ACT OF 2011 

Mr. DOLD. Mr. Speaker, I move to 

suspend the rules and pass the bill 

(H.R. 3187) to require the Secretary of 

the Treasury to mint coins in recognition and celebration of the 75th anniversary of the establishment of the 

March of Dimes Foundation, as amended. 

The Clerk read the title of the bill. 

The text of the bill is as follows: 

H.R. 3187 

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 ‘‘March of 

Dimes Commemorative Coin Act of 2011’’. 

SEC. 2. FINDINGS. 

The Congress finds the following: 

(1) President Franklin Roosevelt’s personal 

struggle with polio led him to create the National Foundation for Infantile Paralysis 


smartinez on DSK6SPTVN1PROD with HOUSE