By: Darby (Senate Sponsor - Nichols) H.B. No. 2533          (In the Senate - Received from the House April 12, 2021;   April 13, 2021, read first time and referred to Committee on   Business & Commerce; May 4, 2021, reported adversely, with   favorable Committee Substitute by the following vote:  Yeas 7,   Nays 0; May 4, 2021, sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR H.B. No. 2533 By:  Hancock     A BILL TO BE ENTITLED   AN ACT     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 [EFFECT] OF CHAPTER. This   chapter does not apply to [prohibit]:                (1)  a person who is authorized by law to perform [from   performing] an evaluation of real property for or to provide   [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   who provides [from 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 who performs [from 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 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 [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) 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.     * * * * *