By: Darby (Senate Sponsor - Nichols) H.B. No. 2533
         (In the Senate - Received from the House April 12, 2021;
  April 13, 2021, read first time and referred to Committee on
  Business & Commerce; May 4, 2021, reported adversely, with
  favorable Committee Substitute by the following vote:  Yeas 7,
  Nays 0; May 4, 2021, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 2533 By:  Hancock
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the performance of a real property evaluation for use by
  certain financial institutions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1103.003, Occupations Code, is amended
  by adding Subdivisions (4-b), (6-c), and (7-a) to read as follows:
               (4-b)  "Automated valuation model" means an automated
  system used to derive the value of real property through publicly
  available property records and various analytic methodologies,
  including comparable sales prices, home characteristics, and
  historical home price appreciations.
               (6-c)  "Federally regulated financial institution"
  means:
                     (A)  a depository institution as defined by
  Section 3, Federal Deposit Insurance Act (12 U.S.C. Section 1813)
  or a subsidiary of a depository institution; or
                     (B)  a federal credit union or a state credit
  union as defined by Section 101, Federal Credit Union Act (12 U.S.C.
  Section 1752), a subsidiary of a credit union, or a credit union
  service organization.
               (7-a)  "Non-bank financial institution" means:
                     (A)  a residential mortgage loan company licensed
  under Chapter 156, Finance Code;
                     (B)  a mortgage banker regulated under Chapter
  157, Finance Code; or
                     (C)  a regulated lender licensed under Chapter
  342, Finance Code.
         SECTION 2.  Section 1103.004, Occupations Code, is amended
  to read as follows:
         Sec. 1103.004.  APPLICABILITY [EFFECT] OF CHAPTER. This
  chapter does not apply to [prohibit]:
               (1)  a person who is authorized by law to perform [from
  performing] an evaluation of real property for or to provide
  [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
  who provides [from 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 who performs [from 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 federally regulated financial
  institution or any other person engaged by the institution who
  performs an evaluation of real property for use by the institution
  in a transaction for which the institution is not required to use
  the services of a licensed or certified appraiser under federal
  regulations adopted under Title XI, Financial Institutions Reform,
  Recovery, and Enforcement Act of 1989 (12 U.S.C. Section 1833e) or
  under applicable state law;
               (5)  an employee of a non-bank financial institution or
  any other person engaged by the institution who provides an
  analysis, assessment, opinion, conclusion, notation, or
  compilation of data concerning the value of an interest in real
  property for use by the institution; or
               (6)  the procurement or use of an automated valuation
  model.
         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) to provide:
               (1)  an evaluation of real property described by
  Section 1103.004(4); or
               (2)  an analysis, assessment, opinion, conclusion,
  notation, or compilation of data concerning the value of an
  interest in real property described by Section 1103.004(5) for use
  by a non-bank financial institution.
         (c)  A document provided under Section 1103.004(4) or (5)
  must contain on the first page of the document the following notice:
  "This is not an appraisal performed in accordance with the Uniform
  Standards of Professional Appraisal Practice."
         SECTION 4.  The changes in law made by this Act apply only to
  an evaluation, document, or action related to a real property
  transaction commenced on or after the effective date of this Act.
  An evaluation, document, or other action related to a real property
  transaction commenced before the effective date of this Act is
  governed by the law applicable immediately before the effective
  date of this Act, and that law is continued in effect for that
  purpose.
         SECTION 5.  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.
 
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