I 

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. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 16, 2010 

Mr. CLAY 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 HUD–1 settlement statement of information 

regarding any home inspection conducted in connection 

with settlement. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Home Inspection Act 

3 of 2010’’. 

4 SEC. 2. HOME INSPECTION REQUIREMENT. 

5 (a) REQUIREMENT.—The Federal banking agencies 

6 (as such term is defined in section 103(cc) of the Truth 

7 in Lending Act (15 U.S.C. 1602(cc))), in consultation 

8 with the Secretary of Housing and Urban Development, 

9 the Federal Trade Commission, and any Federal agency 

10 or commission established by law to regulate the provision 

11 of consumer financial products or services, shall jointly 

12 prescribe regulations to prohibit any lender from making 

13 any federally related mortgage loan (as such term is de14 fined in section 3 of the Real Estate Settlement Proce15 dures Act of 1974 (12 U.S.C. 2602)) under which a home 

16 inspection is conducted in connection with settlement of 

17 the mortgage loan unless such inspection is conducted by 

18 a home inspector who is licensed, certified, approved, or 

19 otherwise regulated by the home State of the inspector or 

20 the State in which the real property is located. 

21 (b) ENFORCEMENT.—Compliance with the require22 ments imposed pursuant to subsection (a) of this section 

23 shall be enforced in the same manner as provided under 

24 section 108 of the Truth in Lending Act (15 U.S.C. 1607) 

25 for enforcement of the requirements under such Act. 


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1 SEC. 3. INCLUSION OF HOME INSPECTION INFORMATION IN 

2 HUD–1 SETTLEMENT FORM. 

3 (a) IN GENERAL.—Subsection (a) of section 4 of the 

4 Real Estate Settlement Procedures Act of 1974 (12 

5 U.S.C. 2603(a)) is amended— 

6 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 

7 (2) by adding at the end the following new 

8 paragraph: 

9 ‘‘(2) The Secretary shall include in the standard form 

10 an item for identifying any home inspection conducted in 

11 connection with the settlement, when such inspection was 

12 or is to be completed, the cost of the inspection, whether 

13 the charge for such inspection is imposed on the borrower 

14 or the seller, and whether such charge has been paid be15 fore settlement and a copy of the receipt of payment for 

16 the inspection is included with the settlement documents. 

17 Such item shall be included in the form at the place where 

18 items relating to additional settlement charges (such as 

19 pest inspection charges) are located.’’. 

20 (b) REGULATIONS.—Not later than the expiration of 

21 the ø—¿-day period beginning on the date of the enact22 ment of this Act, the Secretary of Housing and Urban 

23 Development shall issue regulations implementing the 

24 amendments made by subsection (a) and revising the 

25 standard real estate settlement form required under secVerDate Nov 24 2008 23:37 Mar 17, 2010 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4854.IH H4854

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1 tion 4 of the Real Estate Settlement Procedures Act of 

2 1974 in accordance with such amendments. 

Æ 


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