1-1 By: Dukes (Senate Sponsor - Jackson) H.B. No. 1268 1-2 (In the Senate - Received from the House May 11, 2001; 1-3 May 11, 2001, read first time and referred to Committee on Business 1-4 and Commerce; May 11, 2001, reported favorably by the following 1-5 vote: Yeas 5, Nays 0; May 11, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the appraisement of real property securing a mortgage 1-9 loan; providing a criminal penalty. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subchapter D, Chapter 35, Business & Commerce 1-12 Code, is amended by adding Section 35.56 to read as follows: 1-13 Sec. 35.56. OFFENSE: IMPROPERLY INDUCED APPRAISAL FOR 1-14 MORTGAGE LOAN. (a) In this section: 1-15 (1) "Lender" means a person who lends money for or 1-16 invests money in mortgage loans. 1-17 (2) "Mortgage loan" means a loan that is secured by a 1-18 deed of trust, security deed, or other lien on real property. 1-19 (b) A lender commits an offense if in connection with a 1-20 mortgage loan transaction the lender pays or offers to pay a 1-21 person, including an individual licensed or certified by the Texas 1-22 Appraiser Licensing and Certification Board or the Texas Real 1-23 Estate Commission, a fee or other consideration for appraisal 1-24 services and the payment: 1-25 (1) is contingent on a minimum, maximum, or pre-agreed 1-26 estimate of value of property securing the loan; and 1-27 (2) interferes with the person's ability or obligation 1-28 to provide an independent and impartial opinion of the property's 1-29 value. 1-30 (c) An offense under this section is a Class A misdemeanor. 1-31 (d) Instructions given by a lender to a real estate 1-32 appraiser regarding legal or other regulatory requirements for the 1-33 appraisal of property, or any other communications between a lender 1-34 or real estate appraiser necessary or appropriate under a law, 1-35 regulation, or underwriting standard applicable to a real estate 1-36 appraisal do not constitute interference by a lender for purposes 1-37 of Subsection (b)(2). 1-38 SECTION 2. This Act takes effect September 1, 2001. 1-39 * * * * *