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                                  * * * * *