General Assembly Substitute Bill No. 5417
February Session, 2012 *_____HB05417BA____032012____*
General Assembly
Substitute Bill No. 5417
February Session, 2012
*_____HB05417BA____032012____*
AN ACT CONCERNING BROKER PRICE OPINIONS FOR MORTGAGE LOAN MODIFICATIONS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 20-526 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
(a) For purposes of this section, "loan modification" means a modification to an existing loan made by a lender in response to a borrower's long-term inability to repay the loan and may involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, or both.
(b) The provisions of sections 20-500 to 20-528, inclusive, concerning the certification, licensing, limited licensing or provisional licensing of real estate appraisers shall not apply to (1) any person under contract with a municipality who performs a revaluation of real estate for assessment purposes pursuant to section 12-62, [and] (2) any licensed real estate broker or real estate salesperson who estimates the value of real estate as part of a market analysis performed for the owner of the real estate or a designee of the owner, on such terms as may be agreed upon between such owner or the owner's designee and the real estate broker or real estate salesperson, and (3) any licensed real estate broker or real estate salesperson with at least five years of experience as a licensed real estate broker or real estate salesperson who estimates the value of real estate as part of a loan modification on a mortgage loan secured by such real estate for the mortgagee, as defined in section 49-8a, such mortgagee's agent, or an attorney representing such mortgagee, mortgagee's agent or owner of such real estate on such terms as may be agreed upon between such mortgagee, mortgagee's agent or attorney and the real estate broker or real estate salesperson.
(c) (1) The estimate of value set forth in subsection (b) of this section shall be for the purpose of (A) a prospective listing or sale of such real estate, (B) providing information to the seller or landlord under a listing agreement, [or] (C) providing information to a prospective buyer or tenant under a buyer or tenant agency agreement, or (D) providing information to a mortgagee, a mortgage servicer, as defined in section 49-8a, or an attorney representing such mortgagee, mortgage servicer or owner of the real estate secured by a mortgage loan for purposes of a loan modification on such mortgage loan, provided such estimate of value shall not be referred to or be construed as an appraisal. If such owner executes a listing contract with the real estate broker or real estate salesperson who so estimated the value of the real estate for the sale of the real estate and such real estate contains any building or other structure, occupied or intended to be occupied by no more than four families, then such owner shall be credited against any compensation the owner pays on account of such listing contract for any fee paid by the owner for such estimate of value.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2012 20-526
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2012
20-526
BA Joint Favorable Subst.
BA
Joint Favorable Subst.