12 U.S.C. § 1701x–1: Home inspection counseling

Summary

The Secretary of Housing and Urban Development must tell people buying homes about the need for an independent home inspection. HUD must publish and make available in English and Spanish a HUD/FHA form (HUD 92564–CN) and a HUD/FHA booklet both called "For Your Protection: Get a Home Inspection," a separate HUD booklet with the same message that does not mention FHA-insured homes, and a document called "Ten Important Questions To Ask Your Home Inspector." HUD must put these materials online, promote them through home-purchase counseling announcements and HUD’s toll-free hotlines, and focus on reaching first-time and low-income buyers. HUD may update the materials. Lenders approved for FHA programs must give prospective buyers the form, the FHA booklet, and the Ten Questions at first contact (pre-qualification, pre-approval, or initial application). HUD-approved housing counseling agencies must give clients the non-FHA HUD booklet and the Ten Questions during home-purchase counseling. HUD training for counseling agencies must cover telling buyers about inspections; how inspections work, including radon and lead-based paint testing; how to find and choose a qualified inspector; and a review of HUD’s outreach materials.

Title 12, §1701x–1

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(a)Public outreach

(1)In general

The Secretary of Housing and Urban Development (in this section referred to as the “Secretary”) shall take such actions as may be necessary to inform potential homebuyers of the availability and importance of obtaining an independent home inspection. Such actions shall include—

(A)publication of the HUD/FHA form HUD 92564–CN entitled “For Your Protection: Get a Home Inspection”, in both English and Spanish languages;

(B)publication of the HUD/FHA booklet entitled “For Your Protection: Get a Home Inspection”, in both English and Spanish languages;

(C)development and publication of a HUD booklet entitled “For Your Protection—Get a Home Inspection” that does not reference FHA-insured homes, in both English and Spanish languages; and

(D)publication of the HUD document entitled “Ten Important Questions To Ask Your Home Inspector”, in both English and Spanish languages.

(2)Availability

The Secretary shall make the materials specified in paragraph (1) available for electronic access and, where appropriate, inform potential homebuyers of such availability through home purchase counseling public service announcements and toll-free telephone hotlines of the Department of Housing and Urban Development. The Secretary shall give special emphasis to reaching first-time and low-income homebuyers with these materials and efforts.

(3)Updating

The Secretary may periodically update and revise such materials, as the Secretary determines to be appropriate.

(b)Requirement for FHA-approved lenders

Each mortgagee approved for participation in the mortgage insurance programs under title II of the National Housing Act [12 U.S.C. 1707 et seq.] shall provide prospective homebuyers, at first contact, whether upon pre-qualification, pre-approval, or initial application, the materials specified in subparagraphs (A), (B), and (D) of subsection (a)(1).

(c)Requirements for HUD-approved counseling agencies

Each counseling agency certified pursuant by the Secretary to provide housing counseling services shall provide each of their clients, as part of the home purchase counseling process, the materials specified in subparagraphs (C) and (D) of subsection (a)(1).

(d)Training

Training provided the Department of Housing and Urban Development for housing counseling agencies, whether such training is provided directly by the Department or otherwise, shall include—

(1)providing information on counseling potential homebuyers of the availability and importance of getting an independent home inspection;

(2)providing information about the home inspection process, including the reasons for specific inspections such as radon and lead-based paint testing;

(3)providing information about advising potential homebuyers on how to locate and select a qualified home inspector; and

(4)review of home inspection public outreach materials of the Department.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The National Housing Act, referred to in subsec. (b), is act June 27, 1934, ch. 847, 48 Stat. 1246. Title II of the Act is classified generally to subchapter II (§ 1707 et seq.) of this chapter. For complete classification of this Act to the Code, see section 1701 of this title and Tables. Codification Section was enacted as part of the Expand and Preserve Home Ownership Through Counseling Act and also as part of the Mortgage Reform and Anti-Predatory Lending Act and as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and not as part of the National Housing Act which comprises this chapter.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective on the date on which final

Regulations

implementing such section take effect, or on the date that is 18 months after the designated transfer date if such

Regulations

have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as an

Effective Date

of 2010 Amendment note under section 1601 of Title 15, Commerce and Trade.

§1701x–1 Home Inspection Counseling

Summary

Title 12, §1701x–1

Notes & Related Subsidiaries

Editorial Notes

References in Text

Statutory Notes and Related Subsidiaries

Effective Date

Regulations

Regulations

Effective Date

Citations & Metadata