By Haywood S.B. No. 1082 76R8901 CLG-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the appraisement of real property securing a mortgage 1-3 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 MORTGAGE LOAN. (a) In this section: 1-9 (1) "Lender" means a person who lends money for or 1-10 invests money in mortgage loans. 1-11 (2) "Mortgage loan" means a loan that is secured by a 1-12 deed of trust, security deed, or other lien on real property. 1-13 (b) A lender commits an offense if in connection with a 1-14 mortgage loan transaction the lender pays or offers to pay a 1-15 person, including an individual licensed or certified by the Texas 1-16 Appraiser Licensing and Certification Board or the Texas Real 1-17 Estate Commission, a fee or other consideration for appraisal 1-18 services and the payment: 1-19 (1) is contingent on a minimum, maximum, or pre-agreed 1-20 estimate of value of property securing the loan; and 1-21 (2) interferes with the person's ability or obligation 1-22 to provide an independent and impartial opinion of the property's 1-23 value. 1-24 (c) An offense under this section is a Class A misdemeanor. 2-1 (d) Instructions given by a lender to a real estate 2-2 appraiser regarding legal or other regulatory requirements for the 2-3 appraisal of property, or any other communications between a lender 2-4 or real estate appraiser necessary or appropriate under a law, 2-5 regulation, or underwriting standard applicable to a real estate 2-6 appraisal do not constitute interference by a lender for purposes 2-7 of Subsection (b)(2). 2-8 SECTION 2. This Act takes effect September 1, 1999. 2-9 SECTION 3. The importance of this legislation and the 2-10 crowded condition of the calendars in both houses create an 2-11 emergency and an imperative public necessity that the 2-12 constitutional rule requiring bills to be read on three several 2-13 days in each house be suspended, and this rule is hereby suspended.