By Dukes                                              H.B. No. 1268
         77R4488 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 35.56 to read as follows:
 1-7           Sec. 35.56.  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, 2001.