Page:United States Statutes at Large Volume 106 Part 5.djvu/151

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PUBLIC LAW 102-550 —OCT. 28, 1992 106 STAT. 3789 SEC. 514. STUDY REGARDING HOME WARRANTY PLANS. 12 USC 1701J-1 (a) IN GENERAL. —The Secretary of Housing and Urban Development (hereafter in this section referred to as the "Secretary") shall conduct a study of home and builder's warranties and protection plans regarding the construction of, and materials used in, 1- to 4-family dwellings subject to mortgages insured under title II of the National Housing Act. (b) SCOPE OF STUDY. — The study shall analyze— (1) the extent to which home sellers and builders use such warranties and plans, (2) how such warranties and plans aftect the single family mortgage insurance program under the National Housing Act and the solvency of the Mutual Mortgage Insurance Fund, (3) any effects on homeowners of reliance upon such warranties and plans, (4) the cost of inspections of mortgaged homes not covered by such warranties or plans, (5) how quickly the issuers of such warranties and plans pay claims to homeowners under the warranties and plans, (6) how well such warranties and plans provide for the prevention of structural damage before damage occurs, (7) how responsive the issuers are to homeowner complaints, (8) the extent to which homeowners are adequately informed of the extent of insurance coverage, the complaint procedures, and the arbitration procedures available to them under such warranties and plans, (9) the extent to which the arbitration process used to settle claims under such warranties and plans provides fair and reasonable relief for homeowners, (10) how well homeowners are informed of their right to appeal the decision of such arbitrators to the Secretary, (11) whether the reporting and inspection requirements to which such warranties and plans are subject provide the Secretary with sufficient information to verify that such warranties and plans are acceptable, (12) whether dwellings covered by such warranties and plans satisfy all requirements which would have been applicable if such dwellings had been approved for mortgage insurance by the Secretary before the beginning of construction, and (13) any other issues relating to such warranties and plans that the Secretary considers appropriate. (c) REPORT. —The Secretary shall submit a report to the Congress regarding the findings of the study and any recommendations of the Secretary resulting from the study, not later than the expiration of the 12-month period beginning on the date of the enactment of this Act. SEC. 515. EXPENDITURES TO CORRECT DEFECTS. Section 518(a) of the National Housing Act (12 U.S.C. 1735b(a)) is amended— (1) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively; and (2) by striking out 'The Secretary" and all that follows through "make expenditures for" and inserting in lieu thereof the following: