Sec. 1104.003. DEFINITIONS. (a) The definitions in Section 1103.003 apply to this chapter.
(b) In this chapter:
(1) "Appraisal management company" means, in connection with valuing properties collateralizing mortgage loans or mortgages incorporated in a securitization, an external third party authorized either by a creditor of a consumer credit transaction secured by a consumer's principal dwelling or by an underwriter of or other principal in the secondary mortgage markets that directly or indirectly performs appraisal management services.
(2) "Appraisal management service" means to directly or indirectly perform any of the following acts:
(A) administer an appraisal panel;
(B) recruit, retain, or select an appraiser;
(C) contract with an appraiser to perform an appraisal assignment;
(D) provide a completed appraisal performed by an appraiser to one or more clients; or
(E) manage the process of having an appraisal performed, including:
(i) receiving and assigning appraisal orders and reports;
(ii) tracking and determining the status of orders for appraisals;
(iii) conducting quality control of a completed appraisal before delivery of the appraisal to the person who ordered the appraisal;
(iv) collecting fees from creditors and underwriters for services provided; or
(v) reimbursing appraisers for services performed.
(3) "Appraisal panel" means a pool of licensed or certified appraisers who perform appraisals as independent contractors for an appraisal management company.
(4) "Appraisal review" means the act or process of developing and communicating an opinion about the quality of another appraiser's work that was performed as part of an appraisal assignment. The term does not include an examination of an appraisal for grammatical, typographical, mathematical, or other similar administrative errors that do not involve the appraiser's professional judgment, including compliance with the elements of the client's statement of work.
(5) "Appraiser" means a person licensed or certified under Chapter 1103.
(6) "Controlling person" means:
(A) an owner, officer, or director of an appraisal management company;
(B) an individual employed, appointed, or authorized by an appraisal management company that has the authority to enter into a contractual relationship with other persons for the performance of appraisal management services and the authority to enter into agreements with appraisers for the performance of appraisals; or
(C) an individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company.
(7) "Financial institution" means:
(A) a bank, savings bank, or savings and loan association or a subsidiary or affiliate of a bank, savings bank, or savings and loan association;
(B) a state or federal credit union or a subsidiary, affiliate, or credit union service organization of a state or federal credit union;
(C) an insurance company licensed or authorized to do business in this state under the Insurance Code;
(D) a mortgage banker registered under Chapter 157, Finance Code;
(E) a person licensed under Chapter 156, Finance Code;
(F) a lender licensed under Chapter 342, Finance Code;
(G) a farm credit system institution; or
(H) a political subdivision of this state conducting an affordable home ownership program.
(8) "Uniform Standards of Professional Appraisal Practice" means the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards Board of the Appraisal Foundation.
Added by Acts 2011, 82nd Leg., R.S., Ch. 256 (H.B. 1146), Sec. 2, eff. September 1, 2011.
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