CHAPTER 103. APPRAISALS IMPROPERLY INDUCED BY MORTGAGE LENDERS
BUSINESS AND COMMERCE CODE
TITLE 5. REGULATION OF BUSINESSES AND SERVICES
SUBTITLE C. BUSINESS OPERATIONS
CHAPTER 103. APPRAISALS IMPROPERLY INDUCED BY MORTGAGE LENDERS
Sec. 103.001. DEFINITIONS. In this chapter:
(1) "Lender" means a person who lends money for or invests money
in mortgage loans.
(2) "Mortgage loan" means a loan secured by a deed of trust,
security deed, or other lien on real property.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 103.002. CRIMINAL PENALTY. (a) A lender commits an
offense if in connection with a mortgage loan transaction the
lender pays or offers to pay a person, including an individual
licensed or certified by the Texas Appraiser Licensing and
Certification Board or the Texas Real Estate Commission, a fee or
other consideration for appraisal services and the payment:
(1) is contingent on a minimum, maximum, or pre-agreed estimate
of value of property securing the loan; and
(2) interferes with the person's ability or obligation to
provide an independent and impartial opinion of the property's
value.
(b) An offense under this section is a Class A misdemeanor.
(c) An instruction a lender gives to a real estate appraiser
regarding a legal or other regulatory requirement for the
appraisal of property, or any other communication between a
lender or real estate appraiser necessary or appropriate under a
law, regulation, or underwriting standard applicable to a real
estate appraisal, does not constitute interference by a lender
for purposes of Subsection (a)(2).
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.