GAO found that, even among peoplewho had just bought a home, most did not know that home inspections are notconducted automatically; that appraisals are not home inspections; that the U.S.Department of Housing and Urban Development (HUD) recommends that buyers obtaina voluntary home inspection. Many thought that FHA performed inspectionsautomatically or did not realize that they would need to initiate an inspection."Homebuyers need to ask for a home inspection," Richardson said. "Whilehomebuyers may eventually consider a home inspection, they often do so too lateto make any difference. The bottom line is that many homebuyers fail to seekhome inspections based on confusion, poor understanding and ineffective,untimely communication. Hundreds of thousands of homebuyers, perhaps millions,miss their opportunity to seek a home inspection." In response, the Financial Services Committee added a major chapter on housingcounseling in the Mortgage Reform and Anti-Predatory Lending Act The Velazquezamendment adds to that counseling chapter. The provisions added to the Act require HUD to take such actions as arenecessary to inform potential homebuyers of the availability and importance ofobtaining an independent home inspection.
Under the new home inspection provisions:* All FHA-approved lenders will be required to provide prospective mortgageapplicants these materials at first contact, whether for pre-qualification,pre-approval, or initial application, to ensure that prospective homebuyersconsider home inspection as early as possible in any transaction. * The housing counselors for each counseling agency certified by HUD to providehousing counseling shall be required to provide these home inspection materialsto prospective homebuyers as part of the counseling process. * All HUD-approved housing counselors will be trained to counsel homebuyers onhome inspection, including the importance and availability of home inspection,and information on how to locate and select a qualified home inspector.ASHI members and Pence congratulated Rep. Velazquez for her hard work, and theFinancial Services Committee for accepting the language.
At press time, theMortgage Reform and Anti-Predatory Lending Act awaits action on the House floor.The bill is expected to receive priority treatment in the current Congress. About the American Society of Home InspectorsIn its 32nd year and with more than 5,000 members, ASHI is the oldest and mostwidely recognized non-profit, professional organization of home inspectors inNorth America. Its Standards of Practice and Code of Ethics is the industrystandard. For more information, visit Gibbs & Soell Public RelationsApril Samuelson(847) 519-9150 Copyright Business Wire 2009. (Reuters) - Vista Equity Partners Fund III L.P., a private equity firm, raised its offer to buy SumTotal Systems Inc SUMT.O to $4.50 per share in cash, topping an offer made by Accel-KKR last month and escalating the bidding war. DealsThe latest offer from Vista, which owns about 13 percent of SumTotal and is its largest shareholder, values the company's outstanding equity at about $146 million.Shares of SumTotal, an employee-management software maker, rose 17 percent to $4.53 in morning trade on Nasdaq.Last month, SumTotal had agreed to be bought out by Accel-KKR, whose offer of $3.80 a share in cash trumped Vista's earlier offer of $3.25 a share.Vista said its latest offer of $4.50 per share represents a premium of 124 percent to SumTotal stock's closing price on April 3, the day before Vista announced its initial offer.Accel-KKR is a private equity firm that makes investments in mid-market technology companies.(Reporting by S John Tilak in Bangalore; Editing by Deepak Kannan) Deals.