SEC. 2. HOME INSPECTION COUNSELING. 
Section 1451 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 1701x–1) is 
amended— 
(1) in subsection (b)— 
(A) by striking the subsection designation 
and all that follows through ‘‘Each’’ and insert-
ing the following: 
‘‘(b) REQUIREMENT
FOR FHA-APPROVED LEND-
ERS.— 
‘‘(1) REQUIREMENT.—Each’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) EFFECTIVE DATE; MORTGAGEE LETTER.— 
Not later than the expiration of the 90-day period 
beginning upon the date of the enactment of the 
Consumer Protection Home Inspection Counseling 
Act of 2012, the Secretary shall publish a Mortgagee 
Letter informing mortgagees of their obligation 
under paragraph (1).’’; 
(2) in subsection (c)— 
(A) by striking the subsection designation 
and all that follows through ‘‘Each’’ and insert-
ing the following: 
‘‘(c) REQUIREMENTS FOR HUD-APPROVED COUN-
SELING AGENCIES.— 
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‘‘(1) PROVISION OF MATERIALS.—Each’’; 
(B) by striking ‘‘subparagraphs (C) and 
(D) of’’; and 
(C) by adding at the end the following new 
paragraphs: 
‘‘(2) REQUIREMENTS
FOR
HOUSING
COUN-
SELORS.—Each person providing counseling for a 
housing counseling entity authorized, certified, or 
funded in whole or in part under section 106 of the 
Housing and Urban Development Act of 1968 (12 
U.S.C. 1701x) shall be trained through the vol-
untary home inspection training module established 
pursuant to subsection (d), shall distribute the coun-
seling aids to be developed under this section, and 
shall explain the materials specified in subsection 
(a)(1) and other aids and materials set forth in this 
section. 
‘‘(3) REQUIREMENTS
FOR
HOMEOWNERSHIP 
COUNSELING
PROGRAMS.—Any 
homeownership 
counseling program required under, or provided in 
connection with, any program administered by the 
Department of Housing and Urban Development 
shall be provided only by organizations or counselors 
certified by the Secretary pursuant to this section as 
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competent to provide voluntary home inspection 
counseling. 
‘‘(4) SANCTIONS.—The Secretary may withhold, 
withdraw, or suspend housing counseling certifi-
cations for any housing counselor or counseling enti-
ty that fails to meet the requirements of this sec-
tion.’’; 
(3) in subsection (d)— 
(A) in paragraph (3), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (4), by striking the pe-
riod at the end and inserting ‘‘; and’’; 
(C) 
by 
redesignating 
paragraphs 
(1) 
through (4) (as so amended) as subparagraphs 
(A) through (D), respectively, and realigning 
such subparagraphs (as so redesignated) so as 
to be indented 4 ems from the left margin; 
(D) by striking the subsection designation 
and all that follows through ‘‘shall include—’’ 
and inserting the following: 
‘‘(d) TRAINING.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a comprehensive program to train staff of 
the Department, contractors, individuals, and enti-
ties that provide housing counseling under programs 
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authorized, certified, or funded under section 106 of 
the Housing and Urban Development Act of 1968 
(12 U.S.C. 1701x) to also provide counseling to con-
sumers on voluntary home inspection. 
‘‘(2) REQUIREMENTS.—The training program 
established pursuant to this subsection shall include 
development of a training module to train counselors 
as well as counseling aids to be used by housing 
counselors and suitable for distribution to con-
sumers. The training materials shall be written in 
plain language and shall be comprehensible to un-
trained consumers with or without ongoing assist-
ance from housing counselors. Training provided 
under the program shall include—’’; 
(E) in paragraph (2), as added by the 
amendment made by subparagraph (D) of this 
paragraph, by adding at the end the following 
new subparagraph: 
‘‘(E) Internet website references and infor-
mation sufficient for counselors and home-
buyers to locate and select a local professional 
home inspector.’’; and 
(F) by adding at the end the following new 
paragraphs: 
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‘‘(3) CONTENT.—At a minimum, the home in-
spection counseling program established under this 
subsection, and the training module and counseling 
aids developed under this subsection, shall convey 
the following information: 
‘‘(A) That a home inspection in connection 
with purchase of a home is voluntary, but not 
mandatory, which means that the homebuyer 
must make a personal choice whether to obtain 
a home inspection. 
‘‘(B) That the Department of Housing and 
Urban Development recommends that home-
buyers obtain a voluntary home inspection. 
‘‘(C) That a home inspection is an in-depth 
technical and objective examination of the phys-
ical structure and internal systems of the home, 
from the foundation to the roof, and should be 
performed by a trained and experienced profes-
sional home inspector. 
‘‘(D) That a home inspection is not re-
quired in the case of an FHA loan insured 
under title II of the National Housing Act (12 
U.S.C. 1707 et seq.) and that a home inspec-
tion is not performed by FHA. 
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‘‘(E) That in most cases, no home inspec-
tion will be performed unless the homebuyer re-
quests one. 
‘‘(F) That it is the burden of the home-
buyer to arrange for a home inspection if one 
is requested. 
‘‘(G) That an appraisal is not equivalent to 
a home inspection. 
‘‘(H) That if the homebuyer chooses to ob-
tain a home inspection, it is generally to the 
homebuyer’s benefit to do so as early as pos-
sible. 
‘‘(I) That the homebuyer may ask to make 
the transaction contingent on the outcome of 
the home inspection and that the homebuyer 
may realize substantial financial benefits from 
the home inspection, including from identifying 
possible repairs that could be performed and 
paid for by the seller prior to the closing. 
‘‘(J) That the homebuyer should consider 
requesting a voluntary home inspection. 
‘‘(4) ADDITIONAL GUIDANCE MATERIALS.—The 
Secretary shall develop, in consultation with national 
professional home inspector associations, additional 
guidance materials to educate housing counselors on 
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