87R12552 TYPED
 
  By: Darby H.B. No. 2533
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to performance of an evaluation of real property for use by
  a financial institution
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1103.003, Occupations Code, is amended
  by adding Subdivision (7-a) to read as follows:
               (7-a)  "Financial institution" means:
                     (A)  a depository institution as defined in
  section 3 of the Federal Deposit Insurance Act [12 USCS § 1813]or a
  subsidiary of a depository institution:
                     (B)  a credit union as defined in section 101 of
  the Federal Credit Union Act [12 USCS § 1752], a subsidiary of a
  credit union or a credit union service organization;
                     (C)  a person licensed to make regulated loans, as
  provided by statute of this state;
                     (D)  a person licensed or registered in this state
  under Finance Code Chapter 156 or Finance Code Chapter 157.
         SECTION 2.  Section 1103.004, Occupations Code, is amended
  to read as follows:
         Sec. 1103.004.  EFFECT OF CHAPTER. This chapter does not
  prohibitapply to:
               (1)  a person authorized by law fromin performing an
  evaluation of real property for or providing an evaluation of real
  property to another person;
               (2)  a real estate broker licensed under Chapter 1101
  or a sales agent acting under the authority of a sponsoring broker
  fromin providing to another person a written analysis, opinion, or
  conclusion relating to the estimated price of real property if the
  analysis, opinion, or conclusion:
                     (A)  is not referred to as an appraisal;
                     (B)  is given in the ordinary course of the
  broker's business; and
                     (C)  is related to the actual or potential
  acquisition, disposition, encumbrance, or management of an
  interest in real property; or
               (3)  an appraiser who is certified by a jurisdiction
  other than this state from in performing an appraisal review of an
  appraisal performed on real property in this state, if the
  appraiser does not offer an opinion of value as part of the
  appraisal review.
               (4)  an employee of a financial institution or any
  other person, engaged by a financial institution when performing
  an evaluation of real property for the use of the financial
  institution in a transaction for which the financial institution
  would not be required to use the services of a State licensed or
  State certified appraiser pursuant to federal regulations adopted
  under Title XI of the federal Financial Institutions Reform,
  Recovery, and Enforcement Act of 1989, nor does this Chapter
  prohibit the procurement of an automated valuation model.
  "Automated valuation model" means an automated system that is used
  to derive a property value through the use of publicly available
  property records and various analytic methodologies such as
  comparable sales prices, home characteristics, and historical home
  price appreciations.
         SECTION 3.  Section 1103.405, Occupations Code, is amended
  to read as follows:
         Sec. 1103.405.  PROFESSIONAL STANDARDS. (a) Except as
  provided by Subsection (b), a [A] person who holds a certificate,
  license, or registration issued under this chapter shall comply
  with:
               (1)  the most current edition of the Uniform Standards
  of Professional Appraisal Practice adopted by the Appraisal
  Standards Board of the Appraisal Foundation; or
               (2)  other standards provided by board rule that are at
  least as stringent as the Uniform Standards of Professional
  Appraisal Practice.
         (b)  A certified or licensed appraiser is not required to
  comply with the standards described by Subsection (a) when
  providing an evaluation exempted from this Chapter under Section
  1103.004(4)provided that the evaluation shall contain on the first
  page the following notice that shall be clear and conspicuous:
  "This is not an appraisal performed in accordance with the Uniform
  Standards of Professional Appraisal Practice."
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2021.