Texas Senate Bill SB996

Texas 2021 - 87th Regular

Caption

Relating to performance of an evaluation of real property for use by a financial institution.

Impact

If enacted, SB996 will amend existing laws associated with property appraisal standards, particularly within the Occupations Code. It introduces a clearer framework governing how financial institutions can perform evaluations for real estate related to their transactions. This legislation seeks to enhance the efficiency of property transactions, potentially reducing delays in financial transactions related to real estate by allowing for automated valuation models and evaluations by employees of financial institutions under specific conditions.

Summary

Senate Bill 996 relates to the performance of evaluations of real property, specifically targeting procedures utilized by financial institutions. It aims to redefine the standards and scope under which financial institutions can conduct property evaluations without necessarily relying on state-certified appraisers. This bill establishes new regulations and exemptions intended to streamline the evaluation process, thereby allowing financial institutions greater flexibility in managing property evaluations, particularly in transactions where federal regulations may not require using licensed appraisers.

Contention

While the bill may expedite property transactions and provide necessary flexibility for financial institutions, it raises concerns about the implications for appraisal accuracy and consumer protections. Critics worry that relaxing requirements for evaluations could result in less rigorous assessments, impacting property value determinations. Additionally, there is a debate on whether the automated valuation models can adequately replace human appraisers in ensuring the integrity of valuations in the real estate market. This discussion highlights the balance between regulatory efficiency and the need for quality assurance in property transactions.