By Dukes H.B. No. 511 76R1178 CLG-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the appraisement of real property securing a 1-3 residential mortgage loan; providing a criminal penalty. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter D, Chapter 35, Business & Commerce 1-6 Code, is amended by adding Section 35.55 to read as follows: 1-7 Sec. 35.55. OFFENSE: IMPROPERLY INDUCED APPRAISAL FOR 1-8 RESIDENTIAL MORTGAGE LOAN. (a) In this section: 1-9 (1) "Lender" means a person who lends money for or 1-10 invests money in residential mortgage loans. 1-11 (2) "Residential mortgage loan" means a loan to or for 1-12 the benefit of one or more individuals made primarily for personal, 1-13 family, or household use and primarily secured by a mortgage on 1-14 residential real property. 1-15 (b) A lender commits an offense if before the closing of a 1-16 residential mortgage loan the lender pays or offers to pay a 1-17 person, including a real estate appraiser licensed or certified 1-18 under the Texas Appraiser Licensing and Certification Act (Article 1-19 6573a.2, Vernon's Texas Civil Statutes), a fee or other 1-20 consideration for appraisal services and the payment: 1-21 (1) is contingent on a minimum, maximum, or pre-agreed 1-22 estimate of value of property securing the loan; and 1-23 (2) interferes with the person's ability or obligation 1-24 to provide an independent and impartial opinion of the property's 2-1 value. 2-2 (c) An offense under this section is a Class A misdemeanor. 2-3 SECTION 2. This Act takes effect September 1, 1999. 2-4 SECTION 3. The importance of this legislation and the 2-5 crowded condition of the calendars in both houses create an 2-6 emergency and an imperative public necessity that the 2-7 constitutional rule requiring bills to be read on three several 2-8 days in each house be suspended, and this rule is hereby suspended.