Bill Text: TX SB996 | 2021-2022 | 87th Legislature | Introduced

---

Bill Title: Relating to performance of an evaluation of real property for use by a financial institution.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-03-18 - Referred to Business & Commerce [SB996 Detail]

Download: Texas-2021-SB996-Introduced.html

---

87R12552 TYPED
By: Nichols S.B. No. 996

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.