IB Union Calendar No. 455 112TH CONGRESS 2D SESSION H. R. 2446 [Report No. 112 6] 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 1, 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. CAP- ITO, 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. COO- PER, 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 1, 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 VerDate Mar 15 2010 02:1 Aug 01, 2012 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H2446.RH H2446
2 A BILL To clarify the treatment of homeowner warranties under current law, and for other purposes. smartinez on DSK6TPTVN1PROD with BILLS VerDate Mar 15 2010 02:1 Aug 01, 2012 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H2446.RH H2446
1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 4 5 6 7 8 9 10 11 12 1 14 15 16 17 18 19 20 21 22 2 24 25 SECTION 1. SHORT TITLE. This Act may be cited as the RESPA Home Warranty Clarification Act of 2011. 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 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. 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 VerDate Mar 15 2010 02:1 Aug 01, 2012 Jkt 019200 PO 00000 Frm 0000 Fmt 6652 Sfmt 6401 E:\BILLS\H2446.RH H2446
4 1 incident to or as part of any transaction involving 2 the origination of a federally related mortgage loan: NOTICE: THIS COMPANY MAY PAY 4 PERSONS NOT EMPLOYED BY THE COM- 5 PANY FOR SELLING, ADVERTISING, 6 MARKETING, OR PROCESSING, OR PER- 7 FORMING AN INSPECTION IN CONNEC- 8 TION WITH, A HOMEOWNER WARRANTY 9 OR SIMILAR RESIDENTIAL SERVICE 10 CONTRACT FOR REPAIRING OR RE- 11 PLACING HOME SYSTEM COMPONENTS 12 OR HOME APPLIANCES.. 1 14 15 16 17 18 19 20 21 22 2 24 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 shall be deemed to include, or be deemed to have included, homeowner warranties or similar residential service contracts for the repair or VerDate Mar 15 2010 02:1 Aug 01, 2012 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 620 E:\BILLS\H2446.RH H2446
5 1 replacement of home system components or home ap- 2 pliances. 4 5 6 7 8 9 10 11 12 1 14 15 16 17 18 19 20 21 22 2 24 (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 COM- PANY FOR SELLING, ADVERTISING, MAR- KETING, OR PROCESSING, OR PER- FORMING AN INSPECTION IN CONNEC- TION WITH, A HOMEOWNER WARRANTY OR SIMILAR RESIDENTIAL SERVICE CON- TRACT FOR REPAIRING OR REPLACING HOME SYSTEM COMPONENTS OR HOME APPLIANCES. VerDate Mar 15 2010 02:1 Aug 01, 2012 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 620 E:\BILLS\H2446.RH H2446
1 2 4 5 6 7 8 9 10 11 12 1 14 15 16 17 18 19 20 21 22 2 24 25 VerDate Mar 15 2010 02:1 Aug 01, 2012 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 620 E:\BILLS\H2446.RH H2446 6 () 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 NO- TICE THAT [the provider of the notice] HAS RECEIVED OR WILL RECEIVE COM- PENSATION 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 RESI- DENTIAL SERVICE CONTRACT AND IF YOU CHOOSE TO PURCHASE SUCH COV- ERAGE YOU ARE FREE TO PURCHASE IT FROM ANOTHER PROVIDER..
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Union Calendar No. 455 112TH CONGRESS 2D SESSION H. R. 2446 [Report No. 112 6] A BILL To clarify the treatment of homeowner warranties under current law, and for other purposes. JULY 1, 2012 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed smartinez on DSK6TPTVN1PROD with BILLS VerDate Mar 15 2010 02:1 Aug 01, 2012 Jkt 019200 PO 00000 Frm 00008 Fmt 6651 Sfmt 6651 E:\BILLS\H2446.RH H2446