Bill Text: TX HB2533 | 2021-2022 | 87th Legislature | Enrolled
Bill Title: Relating to the performance of a real property evaluation for use by certain financial institutions.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2021-06-15 - Effective immediately [HB2533 Detail]
Download: Texas-2021-HB2533-Enrolled.html
H.B. No. 2533 |
|
||
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 [ |
||
chapter does not apply to [ |
||
(1) a person who is authorized by law to perform [ |
||
[ |
||
(2) a real estate broker licensed under Chapter 1101 | ||
or a sales agent acting under the authority of a sponsoring broker | ||
who provides [ |
||
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; [ |
||
(3) an appraiser [ |
||
other than this state who performs [ |
||
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 [ |
||
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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 2533 was passed by the House on April | ||
9, 2021, by the following vote: Yeas 143, Nays 1, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 2533 on May 18, 2021, by the following vote: Yeas 142, Nays 0, | ||
1 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 2533 was passed by the Senate, with | ||
amendments, on May 11, 2021, by the following vote: Yeas 30, Nays | ||
0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |