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 deter-
mine the existence of structural, mechanical, and elec-
trical safety defects, and to require inclusion in the 
standard HUD–1 settlement statement of information 
regarding any home inspection conducted in connection 
with settlement. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Home Inspection Act 
of 2010’’. 
SEC. 2. HOME INSPECTION REQUIREMENT. 
(a) REQUIREMENT.—The Federal banking agencies 
(as such term is defined in section 103(cc) of the Truth 
in Lending Act (15 U.S.C. 1602(cc))), in consultation 
with the Secretary of Housing and Urban Development, 
the Federal Trade Commission, and any Federal agency 
or commission established by law to regulate the provision 
of consumer financial products or services, shall jointly 
prescribe regulations to prohibit any lender from making 
any federally related mortgage loan (as such term is de-
fined in section 3 of the Real Estate Settlement Proce-
dures Act of 1974 (12 U.S.C. 2602)) under which a home 
inspection is conducted in connection with settlement of 
the mortgage loan unless such inspection is conducted by 
a home inspector who is licensed, certified, approved, or 
otherwise regulated by the home State of the inspector or 
the State in which the real property is located. 
(b) ENFORCEMENT.—Compliance with the require-
ments imposed pursuant to subsection (a) of this section 
shall be enforced in the same manner as provided under 
section 108 of the Truth in Lending Act (15 U.S.C. 1607) 
for enforcement of the requirements under such Act. 
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SEC. 3. INCLUSION OF HOME INSPECTION INFORMATION IN 
HUD–1 SETTLEMENT FORM. 
(a) IN GENERAL.—Subsection (a) of section 4 of the 
Real Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2603(a)) is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) The Secretary shall include in the standard form 
an item for identifying any home inspection conducted in 
connection with the settlement, when such inspection was 
or is to be completed, the cost of the inspection, whether 
the charge for such inspection is imposed on the borrower 
or the seller, and whether such charge has been paid be-
fore settlement and a copy of the receipt of payment for 
the inspection is included with the settlement documents. 
Such item shall be included in the form at the place where 
items relating to additional settlement charges (such as 
pest inspection charges) are located.’’. 
(b) REGULATIONS.—Not later than the expiration of 
the ø—¿-day period beginning on the date of the enact-
ment of this Act, the Secretary of Housing and Urban 
Development shall issue regulations implementing the 
amendments made by subsection (a) and revising the 
standard real estate settlement form required under sec-
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tion 4 of the Real Estate Settlement Procedures Act of 
1974 in accordance with such amendments. 
Æ 
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