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A BILL TO BE ENTITLED
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AN ACT
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relating to performance of an evaluation of real property for use by |
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a financial institution |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1103.003, Occupations Code, is amended |
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by adding Subdivision (7-a) to read as follows: |
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(7-a) "Financial institution" means: |
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(A) a depository institution as defined in |
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section 3 of the Federal Deposit Insurance Act [12 USCS § 1813]or a |
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subsidiary of a depository institution: |
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(B) a credit union as defined in section 101 of |
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the Federal Credit Union Act [12 USCS § 1752], a subsidiary of a |
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credit union or a credit union service organization; |
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(C) a person licensed to make regulated loans, as |
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provided by statute of this state; |
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(D) a person licensed or registered in this state |
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under Finance Code Chapter 156 or Finance Code Chapter 157. |
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SECTION 2. Section 1103.004, Occupations Code, is amended |
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to read as follows: |
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Sec. 1103.004. EFFECT OF CHAPTER. This chapter does not |
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prohibitapply to: |
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(1) a person authorized by law fromin performing an |
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evaluation of real property for or providing an evaluation of real |
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property to another person; |
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(2) a real estate broker licensed under Chapter 1101 |
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or a sales agent acting under the authority of a sponsoring broker |
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fromin providing to another person a written analysis, opinion, or |
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conclusion relating to the estimated price of real property if the |
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analysis, opinion, or conclusion: |
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(A) is not referred to as an appraisal; |
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(B) is given in the ordinary course of the |
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broker's business; and |
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(C) is related to the actual or potential |
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acquisition, disposition, encumbrance, or management of an |
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interest in real property; or |
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(3) an appraiser who is certified by a jurisdiction |
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other than this state from in performing an appraisal review of an |
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appraisal performed on real property in this state, if the |
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appraiser does not offer an opinion of value as part of the |
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appraisal review. |
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(4) an employee of a financial institution or any |
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other person, engaged by a financial institution when performing |
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an evaluation of real property for the use of the financial |
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institution in a transaction for which the financial institution |
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would not be required to use the services of a State licensed or |
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State certified appraiser pursuant to federal regulations adopted |
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under Title XI of the federal Financial Institutions Reform, |
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Recovery, and Enforcement Act of 1989, nor does this Chapter |
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prohibit the procurement of an automated valuation model. |
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"Automated valuation model" means an automated system that is used |
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to derive a property value through the use of publicly available |
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property records and various analytic methodologies such as |
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comparable sales prices, home characteristics, and historical home |
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price appreciations. |
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SECTION 3. Section 1103.405, Occupations Code, is amended |
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to read as follows: |
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Sec. 1103.405. PROFESSIONAL STANDARDS. (a) Except as |
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provided by Subsection (b), a [A] person who holds a certificate, |
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license, or registration issued under this chapter shall comply |
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with: |
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(1) the most current edition of the Uniform Standards |
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of Professional Appraisal Practice adopted by the Appraisal |
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Standards Board of the Appraisal Foundation; or |
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(2) other standards provided by board rule that are at |
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least as stringent as the Uniform Standards of Professional |
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Appraisal Practice. |
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(b) A certified or licensed appraiser is not required to |
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comply with the standards described by Subsection (a) when |
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providing an evaluation exempted from this Chapter under Section |
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1103.004(4)provided that the evaluation shall contain on the first |
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page the following notice that shall be clear and conspicuous: |
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"This is not an appraisal performed in accordance with the Uniform |
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Standards of Professional Appraisal Practice." |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |