I 

111TH CONGRESS 

1ST SESSION H. R. 4229 

To amend the Real Estate Settlement Procedures Act of 1974 to ensure 

that borrowers under federally related mortgage loans have an opportunity to inspect closing documents. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 8, 2009 

Ms. BEAN (for herself and Mrs. CAPITO) introduced the following bill; which 

was referred to the Committee on Financial Services 

A BILL 

To amend the Real Estate Settlement Procedures Act of 

1974 to ensure that borrowers under federally related 

mortgage loans have an opportunity to inspect closing 

documents. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Borrowers’ Right to 

5 Inspect Closing Documents Act of 2009’’. 


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1 SEC. 2. FURNISHING OF CLOSING DOCUMENTS TO BOR2 ROWER. 

3 Section 4 of the Real Estate Settlement Procedures 

4 Act of 1974 (12 U.S.C. 2603) is amended by striking sub5 section (b) and inserting the following new subsection: 

6 ‘‘(b) FURNISHING OF CLOSING DOCUMENTS TO BOR7 ROWER THREE DAYS BEFORE SETTLEMENT.— 

8 ‘‘(1) LENDER RESPONSIBILITIES.—The lender 

9 shall furnish to the person conducting the settlement 

10 (in this subsection referred to as the ‘settlement 

11 agent’), at least four business days before the sched12 uled date of settlement, the completed promissory 

13 note, deed of trust or other mortgage instrument, as 

14 the case may be, all items that are needed to com15 plete the uniform settlement statement, the final 

16 Truth-in-Lending Act disclosure, and the final clos17 ing instructions. 

18 ‘‘(2) FURNISHING OF CLOSING DOCUMENTS TO

19 BORROWERS.— 

20 ‘‘(A) REQUIREMENT.—Except as provided 

21 in paragraphs (3) and (4), the settlement agent 

22 shall furnish to the borrower, at least three 

23 business days preceding the scheduled date of 

24 settlement and using the method selected by the 

25 borrower pursuant to subparagraph (B) of this 

26 paragraph— 


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1 ‘‘(i) the completed documents set 

2 forth in paragraph (1), except for the final 

3 closing instructions, and 

4 ‘‘(ii) the completed uniform settlement 

5 statement, 

6 as long as the lender has timely provided the 

7 requisite items and documents to the settlement 

8 agent. The settlement agent shall not be re9 sponsible for the lender’s failure to comply with 

10 paragraph (1). 

11 ‘‘(B) METHODS OF FURNISHING DOCU12 MENTS.—The borrower may select to have the 

13 documents required under subparagraph (A) 

14 furnished by— 

15 ‘‘(i) electronic mail, subject to the 

16 Electronic Signatures in Global and Na17 tional Commerce Act (15 U.S.C. 7001 et 

18 seq.); 

19 ‘‘(ii) telephone facsimile machine; or 

20 ‘‘(iii) making the documents available 

21 for personal inspection at the office of the 

22 settlement agent and providing a copy of 

23 the documents to the borrower to retain. 

24 ‘‘(3) CORRECTIONS.— 


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1 ‘‘(A) IN GENERAL.—Notwithstanding any 

2 provision of paragraph (2) to the contrary, the 

3 settlement agent may make corrections to the 

4 uniform settlement statement and any related 

5 documents prior to the scheduled date of settle6 ment, if— 

7 ‘‘(i) an update of the title search and 

8 examination of the prospective mortgaged 

9 property reveals any defects, liens, encum10 brances, or other matters not discovered in 

11 previous searches; 

12 ‘‘(ii) subject to the lender’s approval, 

13 the borrower’s inspection of the prospective 

14 mortgaged property requires financial ad15 justments; 

16 ‘‘(iii) the borrower and lender agree to 

17 make material changes to the loan trans18 action; or 

19 ‘‘(iv) any other permissible correc20 tions, as identified by regulation by the 

21 Secretary, are made. 

22 ‘‘(B) TIMING.—The requirement under 

23 paragraph (2) to provide completed documents 

24 and the completed settlement statement at least 

25 three business days before settlement shall not 


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1 apply to any uniform settlement statement and 

2 related documents corrected pursuant to sub3 paragraph (A) of this paragraph. 

4 ‘‘(4) EXEMPTION BY SECRETARY.—The Sec5 retary may exempt from the requirements of this 

6 subsection the following settlements: 

7 ‘‘(A) Settlements occurring in localities 

8 where the final settlement statement is not cus9 tomarily provided at or before the date of set10 tlement. 

11 ‘‘(B) Settlements under which compliance 

12 with the requirements of this subsection is im13 practical.’’. 

Æ 


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