IB 

Union Calendar No. 455 

112TH CONGRESS 

2D SESSION H. R. 2446 

[Report No. 112–633] 

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 

JULY 31, 2012 

Additional sponsors: Mr. WESTMORELAND, Mr. MANZULLO, Mr. HUIZENGA of 

Michigan, Mr. KING of New York, Ms. MOORE, Mr. LATHAM, Mr. DAVID

SCOTT of Georgia, Mr. POSEY, Mr. FINCHER, Mr. STIVERS, Mr. 

CLEAVER, Mr. HINOJOSA, Mr. ROSS of Arkansas, Mr. COHEN, Mrs. CAPITO, Ms. SEWELL, Mr. BACA, Mr. ROE of Tennessee, Mrs. BLACKBURN, 

Mr. JONES, Mr. CRAWFORD, Mr. DUNCAN of Tennessee, Mr. ROYCE, Mr. 

LUETKEMEYER, Ms. HAYWORTH, Mr. DESJARLAIS, Mr. DOLD, Mr. COOPER, Mr. FLEISCHMANN, Mr. GRIMM, Mr. MCHENRY, Mr. SHERMAN, Mr. 

MEEKS, Mr. MCCOTTER, Mr. LEWIS of Georgia, Mr. GARY G. MILLER

of California, Mr. GRIFFIN of Arkansas, Mr. HUNTER, and Mr. GUTHRIE

JULY 31, 2012 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 


smartinez on DSK6TPTVN1PROD with BILLS
2 

•HR 2446 RH

A BILL 

To clarify the treatment of homeowner warranties under 

current law, and for other purposes. 


smartinez on DSK6TPTVN1PROD with BILLS
3 

•HR 2446 RH

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 ‘‘RESPA Home War5 ranty Clarification Act of 2011’’. 

6 SEC. 2. TREATMENT OF HOMEOWNER WARRANTIES. 

7 Section 8 of the Real Estate Settlement Procedures 

8 Act of 1974 (12 U.S.C. 2607) is amended by adding at 

9 the end the following new subsection: 

10 ‘‘(e) HOMEOWNER WARRANTIES.— 

11 ‘‘(1) IN GENERAL.—Nothing in this section, 

12 section 2, or section 3 shall be deemed to include, 

13 or be deemed to have included, homeowner warran14 ties or similar residential service contracts for the 

15 repair or replacement of home system components or 

16 home appliances. 

17 ‘‘(2) NOTICE.—Any person that pays another 

18 person not employed by the person for selling, adver19 tising, marketing, or processing, or performing an 

20 inspection in connection with, a homeowner war21 ranty or similar residential service contract for the 

22 repair or replacement of home system components or 

23 home appliances shall include the following state24 ment, in boldface type that is 10-point or larger, in 

25 any such warranty or contract offered or sold as an 


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•HR 2446 RH

1 incident to or as part of any transaction involving 

2 the origination of a federally related mortgage loan: 

3 ‘‘NOTICE: THIS COMPANY MAY PAY 

4 PERSONS NOT EMPLOYED BY THE COM5 PANY FOR SELLING, ADVERTISING, 

6 MARKETING, OR PROCESSING, OR PER7 FORMING AN INSPECTION IN CONNEC8 TION WITH, A HOMEOWNER WARRANTY 

9 OR SIMILAR RESIDENTIAL SERVICE 

10 CONTRACT FOR REPAIRING OR RE11 PLACING HOME SYSTEM COMPONENTS 

12 OR HOME APPLIANCES.’’. 

13 SECTION 1. SHORT TITLE. 

14 This Act may be cited as the ‘‘RESPA Home War15 ranty Clarification Act of 2012’’. 

16 SEC. 2. TREATMENT OF HOMEOWNER WARRANTIES. 

17 Section 8 of the Real Estate Settlement Procedures Act 

18 of 1974 (12 U.S.C. 2607) is amended by adding at the end 

19 the following new subsection: 

20 ‘‘(e) HOMEOWNER WARRANTIES.— 

21 ‘‘(1) IN GENERAL.—Nothing in this section, sec22 tion 2, or section 3 shall be deemed to include, or be 

23 deemed to have included, homeowner warranties or 

24 similar residential service contracts for the repair or 


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•HR 2446 RH

1 replacement of home system components or home ap2 pliances. 

3 ‘‘(2) NOTICE BY HOME WARRANTY COMPANY.— 

4 Any person that pays another person not employed by 

5 the person for selling, advertising, marketing, or proc6 essing, or performing an inspection in connection 

7 with, a homeowner warranty or similar residential 

8 service contract for the repair or replacement of home 

9 system components or home appliances shall include 

10 the following statement, in boldface type that is 10- 

11 point or larger, in any such warranty or contract of12 fered or sold as an incident to or as part of any 

13 transaction involving the origination of a federally 

14 related mortgage loan: 

15 ‘‘ ‘NOTICE: THIS COMPANY MAY PAY 

16 PERSONS NOT EMPLOYED BY THE COM17 PANY FOR SELLING, ADVERTISING, MAR18 KETING, OR PROCESSING, OR PER19 FORMING AN INSPECTION IN CONNEC20 TION WITH, A HOMEOWNER WARRANTY 

21 OR SIMILAR RESIDENTIAL SERVICE CON22 TRACT FOR REPAIRING OR REPLACING 

23 HOME SYSTEM COMPONENTS OR HOME 

24 APPLIANCES.’ 


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•HR 2446 RH

1 ‘‘(3) NOTICE BY REAL ESTATE AGENT OR

2 BROKER.—Any person who has contracted to receive 

3 payment from a provider of the services described in 

4 paragraph (1) for recommending the purchase of a 

5 home warranty or similar residential service contract, 

6 and is not an employee of such provider, shall provide 

7 the potential purchaser, upon first recommending the 

8 purchase of a homeowner warranty or similar resi9 dential service contract, a written notice containing 

10 the following language in boldface type that is 10- 

11 point or larger (with the bracketed matter being re12 placed with the information described by such brack13 eted matter): 

14 ‘‘ ‘NOTICE: THIS IS TO GIVE YOU NO15 TICE THAT [the provider of the notice] HAS 

16 RECEIVED OR WILL RECEIVE COM17 PENSATION FROM [the home warranty com18 pany] FOR [the residential service for which the 

19 notice provider is being compensated]. YOU 

20 ARE NOT REQUIRED TO PURCHASE A 

21 HOME WARRANTY OR A SIMILAR RESI22 DENTIAL SERVICE CONTRACT AND IF 

23 YOU CHOOSE TO PURCHASE SUCH COV24 ERAGE YOU ARE FREE TO PURCHASE IT 

25 FROM ANOTHER PROVIDER’.’’. 


smartinez on DSK6TPTVN1PROD with BILLS

smartinez on DSK6TPTVN1PROD with BILLS
Union Calendar No. 455 

112TH CONGRESS 

2D SESSION H. R. 2446 

[Report No. 112–633] 

A BILL 

To clarify the treatment of homeowner warranties 

under current law, and for other purposes. 

JULY 31, 2012 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


smartinez on DSK6TPTVN1PROD with BILLS