```

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2446 Referred in Senate (RFS)]

112th CONGRESS
  2d Session
                                H. R. 2446

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             August 2, 2012

     Received; read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 AN ACT

 
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 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'.''.

            Passed the House of Representatives August 1, 2012.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
```