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 oppor-
tunity 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Borrowers’ Right to 
Inspect Closing Documents Act of 2009’’. 
VerDate Nov 24 2008 
02:33 Dec 09, 2009
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4229.IH
H4229
tjames on DSKG8SOYB1PROD with BILLS
SEC. 2. FURNISHING OF CLOSING DOCUMENTS TO BOR-
ROWER. 
Section 4 of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2603) is amended by striking sub-
section (b) and inserting the following new subsection: 
‘‘(b) FURNISHING OF CLOSING DOCUMENTS TO BOR-
ROWER THREE DAYS BEFORE SETTLEMENT.— 
‘‘(1) LENDER RESPONSIBILITIES.—The lender 
shall furnish to the person conducting the settlement 
(in this subsection referred to as the ‘settlement 
agent’), at least four business days before the sched-
uled date of settlement, the completed promissory 
note, deed of trust or other mortgage instrument, as 
the case may be, all items that are needed to com-
plete the uniform settlement statement, the final 
Truth-in-Lending Act disclosure, and the final clos-
ing instructions. 
‘‘(2) FURNISHING OF CLOSING DOCUMENTS TO 
BORROWERS.— 
‘‘(A) REQUIREMENT.—Except as provided 
in paragraphs (3) and (4), the settlement agent 
shall furnish to the borrower, at least three 
business days preceding the scheduled date of 
settlement and using the method selected by the 
borrower pursuant to subparagraph (B) of this 
paragraph— 
VerDate Nov 24 2008 
02:33 Dec 09, 2009
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4229.IH
H4229
tjames on DSKG8SOYB1PROD with BILLS
‘‘(i) the completed documents set 
forth in paragraph (1), except for the final 
closing instructions, and 
‘‘(ii) the completed uniform settlement 
statement, 
as long as the lender has timely provided the 
requisite items and documents to the settlement 
agent. The settlement agent shall not be re-
sponsible for the lender’s failure to comply with 
paragraph (1). 
‘‘(B) METHODS
OF
FURNISHING
DOCU-
MENTS.—The borrower may select to have the 
documents required under subparagraph (A) 
furnished by— 
‘‘(i) electronic mail, subject to the 
Electronic Signatures in Global and Na-
tional Commerce Act (15 U.S.C. 7001 et 
seq.); 
‘‘(ii) telephone facsimile machine; or 
‘‘(iii) making the documents available 
for personal inspection at the office of the 
settlement agent and providing a copy of 
the documents to the borrower to retain. 
‘‘(3) CORRECTIONS.— 
VerDate Nov 24 2008 
02:33 Dec 09, 2009
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4229.IH
H4229
tjames on DSKG8SOYB1PROD with BILLS
‘‘(A) IN GENERAL.—Notwithstanding any 
provision of paragraph (2) to the contrary, the 
settlement agent may make corrections to the 
uniform settlement statement and any related 
documents prior to the scheduled date of settle-
ment, if— 
‘‘(i) an update of the title search and 
examination of the prospective mortgaged 
property reveals any defects, liens, encum-
brances, or other matters not discovered in 
previous searches; 
‘‘(ii) subject to the lender’s approval, 
the borrower’s inspection of the prospective 
mortgaged property requires financial ad-
justments; 
‘‘(iii) the borrower and lender agree to 
make material changes to the loan trans-
action; or 
‘‘(iv) any other permissible correc-
tions, as identified by regulation by the 
Secretary, are made. 
‘‘(B) TIMING.—The requirement under 
paragraph (2) to provide completed documents 
and the completed settlement statement at least 
three business days before settlement shall not 
VerDate Nov 24 2008 
02:33 Dec 09, 2009
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4229.IH
H4229
tjames on DSKG8SOYB1PROD with BILLS
apply to any uniform settlement statement and 
related documents corrected pursuant to sub-
paragraph (A) of this paragraph. 
‘‘(4) EXEMPTION
BY
SECRETARY.—The Sec-
retary may exempt from the requirements of this 
subsection the following settlements: 
‘‘(A) Settlements occurring in localities 
where the final settlement statement is not cus-
tomarily provided at or before the date of set-
tlement. 
‘‘(B) Settlements under which compliance 
with the requirements of this subsection is im-
practical.’’. 
Æ 
VerDate Nov 24 2008 
02:33 Dec 09, 2009
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H4229.IH
H4229
tjames on DSKG8SOYB1PROD with BILLS