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Texas Business & Commerce Code - Section 35.56. Offense: Improperly Induced Appraisal For Mortgage Loan

Legal Research Home > Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 35.56. Offense: Improperly Induced Appraisal For Mortgage Loan

§ 35.56. OFFENSE:  IMPROPERLY INDUCED APPRAISAL FOR 
MORTGAGE LOAN.  (a) In this section:
		(1)  "Lender" means a person who lends money for or 
invests money in mortgage loans.
		(2)  "Mortgage loan" means a loan that is secured by a 
deed of trust, security deed, or other lien on real property.
	(b)  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.
	(c)  An offense under this section is a Class A misdemeanor.                   
	(d)  Instructions given by a lender to a real estate 
appraiser regarding legal or other regulatory requirements for the 
appraisal of property, or any other communications between a lender 
or real estate appraiser necessary or appropriate under a law, 
regulation, or underwriting standard applicable to a real estate 
appraisal, do not constitute interference by a lender for purposes 
of Subsection (b)(2).

Added by Acts 2001, 77th Leg., ch. 839, § 1, eff. Sept. 1, 2001.           

Last modified: August 10, 2007