House Bill Calls For Insurance Study

The U.S. House of Representatives passed a measure on May 7 calling for a study of the availability of property insurance for homes where Chinese drywall is present.

The bipartisan measure was part of an amendment to the Mortgage Reform and Anti-Predatory Lending Act introduced by Rep. Robert Wexler, D-Fla., and Rep. Mario Diaz-Balart, R.-Fla. The entire legislation–H.R. 1728–including the amendment, passed by a 300-114 vote.

The amendment calls for the secretary of Housing and Urban Development, in consultation with the Treasury secretary, to conduct a study of the effect of the presence of contaminated Chinese drywall on residential mortgage loan foreclosures.

Specifically, the amendment calls for the agencies to "conduct a study of the effect on residential mortgage loan foreclosures of:

o The presence in residential structures subject to such mortgage loans of drywall that was imported from China during the period beginning with 2004 and ending at the end of 2007; and

o The availability of property insurance for residential structures in which such drywall is present."

A report on the study is to be issued within three months of the enactment of the Mortgage Reform Act.

"The level of threat to the health and homes of the citizens of Florida [from Chinese drywall] is akin to a natural disaster," Rep. Wexler said, speaking on the House floor last week.

"This danger is…like a silent hurricane and it is touching down not just in Florida, but in Louisiana, Mississippi, Texas, Virginia and a growing list of other states," he said, calling on the federal government to take "immediate steps" to protect "afflicted" homeowners.

Rep. Diaz-Balart said that "homeowners are stuck with these homes. They can't sell them. They can't live in them," listing the property damage and health issues now being linked to Chinese drywall.