Resources
Legality
7/28/2008Federal
2007 CONG US HR 3221 110th CONGRESS, 2nd Session
Prohibitions on interested parties in a real estate transaction. No mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, nor any other person with an interest in a real estate transaction involving an appraisal in connection with a mortgage insured under this section shall improperly influence, or attempt to improperly influence, through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, nonpayment for services rendered, or bribery, the development, reporting, result, or review of a real estate appraisal sought in connection with the mortgage.
(2) Civil monetary penalties. The Secretary may impose a civil money penalty for any knowing and material violation of paragraph (1) under the same terms and conditions as are authorized in section 536(a) of this Act.
7/12/2007Alaska
2007 Alaska House Bill No. 162
Sec. 06.60.340. Prohibited activities. In addition to activities prohibited elsewhere in this chapter or by law, a person who is a licensee, a person who is required to be licensed under this chapter, a person who is a small mortgage lender, and a person who is licensed under AS 06.20 may not misrepresent or conceal material facts or make false promises likely to influence, persuade, or induce an applicant for a mortgage loan or a borrower to enter into a mortgage loan transaction, or, in the course of a mortgage loan transaction,
(7) influence or attempt to influence through coercion, extortion, or bribery the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan; this paragraph does not prohibit a person from asking an appraiser to
(A) consider additional appropriate property information;
(B) provide further detail, substantiation, or explanation for the appraiser's value determination; or
(C) correct errors in the appraisal report;
1/17/2008Arizona
2008 Arizona House Bill No.2209,
Q. A mortgage broker shall not:
6. Compensate, whether directly or indirectly, coerce or intimidate an appraiser for the purpose of influencing the independent judgment of the appraiser with respect to the value of real estate that is to be covered by a residential mortgage or that is being offered as security according to an application for a residential mortgage loan.
3/30/2007Arkansas
2007 Arkansas House Bill 2407
(9)(A) To influence or attempt to influence through coercion, extortion, or bribery the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan.
2/2/2008California
2007 California Assembly Bill No. 3022
1090.5. (a) No person with an interest in a real estate transaction involving an appraisal shall improperly influence or attempt to improperly influence, through coercion, extortion, or bribery, the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan.
(c) If a person who violates this section is licensed under any state licensing law and the violation occurs within the course and scope of the person's duties as a licensee, the violation shall be deemed a violation of that state licensing law.
1/1/2007Colorado
SB 85 “Protect Consumer Real Estate Transactions”
This law prohibits a mortgage broker from compensating, coercing or intimidating a real estate appraiser in order to obtain an artificially inflated appraisal. It also prohibits anyone else, including real estate agents, other brokers, lenders or homebuyers, from improperly influencing or trying to influence an appraiser, and prohibits the appraiser from knowingly submitting a false appraisal.
6/12/2008Connecticut
2008 Conneticut House Bill No. 5577
Sec. 81. A mortgage broker shall not influence real estate appraisals of residential property. For the purposes of this section, 'influence residential real estate appraisals' includes, but is not limited to:
(1) Refusal, or intentional failure, to pay an appraiser for an appraisal that reflects a fair market value estimate that is less than the sale contract price; or (2) refusal, or intentional failure, to utilize, or encouraging other mortgage brokers not to utilize, an appraiser based solely on the fact that the appraiser provided an appraisal reflecting a fair market value estimate that was less than the sale contract price.
Sec. 82. (NEW) (Effective July 1, 2008) (a) A real estate broker or real estate salesperson licensed under chapter 392 of the general statutes shall not influence residential real estate appraisals. For the purposes of this section, 'influence residential real estate appraisals' includes, but is not limited to, refusal or intentional failure to refer a homebuyer, or encouraging other real estate brokers or real estate salespersons not to refer a homebuyer, to a mortgage broker, as defined in section 21 of this act, or a lender, as defined in section 21 of this act, based solely on the fact that the mortgage broker or lender uses an appraiser who has provided an appraisal reflecting a fair market value estimate that was less than the sale contract price. (b) Violations of subsection (a) of this section shall be subject to the actions and penalties set forth in section 20-320 of the general statutes.
5/9/2007Delaware
2007 Delaware House Bill No. 162
§ 2250. Prohibited Practices for All Home Loans.
a) Deceptive and unfair business practices. No lender shall: Coerce, intimidate or directly or indirectly compensate an appraiser for the purpose of influencing his or her independent judgment concerning the value of real estate that is to be covered by a home loan or is being offered as security according to an application for a home loan
6/20/2007District of Columbia
District of Columbia Legislative Bill No. 251
Sec. 505. False or misleading filings; coercion; obstruction.
(b) It shall be unlawful for a person to intentionally influence, coerce, manipulate, or mislead a person in connection with financial statements or appraisals to be used in the offer, sale, or purchase of securities for the purpose of rendering such financial statements or appraisals materially misleading
2/29/2008Georgia
2007 GA S.B. 496
No Lender shall knowingly compensate, instruct, induce, coerce, or intimidate or to attempt to compensate, instruct, induce, coerce, or intimidate an appraiser for the purpose of corrupting or improperly influencing the independent judgment of such appraiser with respect to the value of property offered as security for the repayment of a mortgage or loan.'
3/19/2008Hawaii
2007 Hawaii Senate Bill No. 2407
§412: - Improper influence of real estate appraisers. (a) A financial institution shall not improperly influence or attempt to improperly influence the development, reporting, result, or review of a real estate appraisal if the financial institution's compensation is dependent on or affected by the value conclusion generated by the appraisal.
§454- Improper influence of real estate appraisers. (a) No mortgage broker or solicitor shall improperly influence or attempt to improperly influence the development, reporting, result, or review of a real estate appraisal if the mortgage broker's or solicitor's compensation is dependent on or affected by the value conclusion generated by the appraisal.
5/20/2008Illinois
2007 Illinois House Bill No. 5067
No person shall influence or attempt to influence through coercion, extortion, or bribery the independent judgment of an appraiser licensed or certified under this Act in the development, reporting, result, or review of a real estate appraisal. A person who violates this subsection
(e) is guilty of a Class A misdemeanor for the first offense and a Class 4 felony for any subsequent offense.
1/16/2008Indiana
2008 Indiana House Bill No. 1346
(d) A person licensed or registered under this chapter, or a person required to be licensed or registered under this chapter, shall not knowingly bribe, coerce, or intimidate another person to corrupt or improperly influence the independent judgment of a real estate appraiser with respect to the value of any real estate offered as security for a mortgage loan.
2/29/2008Iowa
2007 Iowa House File No. 2449
In any consumer home loan, a lender, mortgage banker, or mortgage broker shall not: 10. Compensate, whether directly or indirectly, coerce, or intimidate an appraiser for the purpose of influencing the independent judgment of the appraiser with respect to the value of real estate that is to be covered by a residential mortgage or is being offered as security according to an application for a residential mortgage loan.
4/16/2007Kansas
2007 Kansas House Bill No. 2111
No lender, as defined in K.S.A. 58-2237 58-2337, and amendments thereto, or any person acting on behalf of a lender shall disclose to an appraiser or other person engaged to determine the appraised value of real estate, the amount of a proposed real estate loan or with the intent to influence the preferred or required value of any real estate intended to secure such loan. A lender may provide a copy of the sales contract for use by the appraiser in accordance with uniform standards of professional appraisal practice.
4/24/2008Kentucky
2008 Kentucky House Bill No. 552
SECTION 3.
(2) It is unlawful for any person in the course of a mortgage transaction to improperly influence the development, report, result, or review of a real estate appraisal sought in connection with a mortgage loan.
10/25/2007Massachusetts
2007 Massachusetts Senate Bill No. 2382
Any person who knowingly:
(5) coerces or induces a real estate appraiser to inflate the value of real property used as collateral for a residential mortgage loan;
(6) represents or implies that a real estate appraiser will not be selected to conduct an appraisal of the real property or selected for future appraisal work unless the appraiser agrees in advance to a value, range of values or minimum value for the real property; or
(7) represents or implies that a real estate appraiser will not be paid for an appraisal unless the appraiser agrees in advance to a value, range of values or a minimum value for the real property shall be punished by imprisonment in the state prison for not more than 5 years or by imprisonment in the house of correction for not more than 2 1/2 years or by a fine of not more than $10,000 in the case of a natural person or not more than $100,000 in the case of any other person, or by both such fine and imprisonment. Any person who engages in a pattern of residential mortgage fraud shall be punished by imprisonment in the state prison for not less than 10 nor more than 15 years or by a fine of not more than $50,000 in the case of a natural person or not more than $500,000 in the case of any other person, or by both such fine and imprisonment. Each residential property transaction that is a violation of this section shall constitute a separate offense and shall not merge with any other offenses prohibited in this section.
1/5/2009Michigan
2007 Michigan Senate Bill No. 356, Michigan Ninety-Fourth Legislature
Sec. 29. (1) An owner, partner, member, officer, director, trustee, employee, agent, broker, or other person, or a representative acting on the authority of that person that willfully or intentionally does any of the following is guilty of a misdemeanor punishable by a fine of not more than $15,000.00 or imprisonment for not more than 1 year, or both:
(d) Coerces or induces a real estate appraiser to inflate the value of real property used as collateral for a mortgage loan, including, but not limited to, by doing any of the following:
(i) Representing or implying that a real estate appraiser will not be selected to conduct an appraisal of the real property or selected for future appraisal work unless the appraiser agrees in advance to a value, range of values, or minimum value for the real property.
(ii) Representing or implying that a real estate appraiser will not be paid for an appraisal unless the appraiser agrees in advance to a value, range of values, or minimum value for the real property.
4/30/2008Minnesota
2007 Minnesota Senate File No. 3154
(a) No person acting as a residential mortgage originator or servicer, including a person required to be licensed under this chapter, and no person exempt from the licensing requirements of this chapter under section 58.04, except as otherwise provided in paragraph (b), shall:
(11) compensate, whether directly or indirectly, coerce or intimidate an appraiser for the purpose of influencing the independent judgment of the appraiser with respect to the value of real estate that is to be covered by a residential mortgage or is being offered as security according to an application for a residential mortgage loan;
6/11/2008Missouri
2008 Missouri House Bill No. 2188
443.930. 1. It is unlawful for a person, in connection with the application for or procurement of a loan secured by real estate to:
(4) Influence, through extortion or bribery, the development, reporting, result, or review of a real estate appraisal 2. Such acts shall be deemed to constitute mortgage fraud
1/6/2005Nebraska
99TH Legislature of Nebraska
Sec. 36. (a) It is unlawful for any person to intentionally influence, coerce, manipulate, or mislead any person in connection with financial statements or appraisals to be used in the offer, sale, or purchase of securities for the purpose of rendering such financial statements or appraisals materially misleading.
3/26/2007Nevada
2007 Nevada Senate Bill No. 546
645B.670 Except as otherwise provided in NRS 645B.690: 1. For each violation committed by an applicant for a license issued pursuant to this chapter, whether or not he is issued a license, the Commissioner may impose upon the applicant an administrative fine of not more than $10,000, if the applicant: (w) Has coerced, intimidated, or directly or indirectly compensated an appraiser for the purposes of influencing the independent judgment of the appraiser with respect to the value of the real estate being offered as security according to an application for a mortgage loan.
3/13/2008New Hampshire
2007 New Hampshire Senate Bill No. 334
VERSION: Amended/Subbed March 13, 2008
479:31 Undue Influence Prohibited; Penalty.
I. No person with an interest in a real estate transaction involving an appraisal shall improperly influence or attempt to improperly influence, through coercion, extortion, bribery, or threat, the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan.
1/29/2008New Mexico
2008 New Mexico Senate Bill No. 445
VERSION: Amended/Subbed January 29, 2008
UNFAIR PRACTICE
B. A licensee shall not:
(1) originate a mortgage loan that would violate the provisions of the Home Loan Protection Act;
(2) coerce, extort, induce, bribe or intimidate an appraiser to value property in excess of its fair market value;
Section 13. [CEASE AND DESIST ORDER--CIVIL FINES.--
A. If the director determines after notice and opportunity for a hearing that a person has engaged, is engaging or is about to engage in any act or practice constituting a violation of any provision of the Mortgage Loan Originator Licensing Act or any rule pursuant to that act, the director by order may require any or all of the following:
(1) that the person cease and desist from the unlawful act or practice;
(2) that the person pay a fine not to exceed five thousand dollars ($5,000) per incident for the unlawful act or practice; and
(3) that the person take such affirmative action as in the judgment of the director will carry out the purposes of the Mortgage Loan Originator Licensing Act.
8/5/2008New York
2007 New York Senate Bill No. 8143
B§ 6. The banking law is amended by adding a new section 590-b to read as follows:
2. No lender or mortgage broker shall improperly influence or attempt to improperly influence the development, reporting, result or review of a real estate appraisal relating to real property securing a home loan
4. Any lender or mortgage broker found by a preponderance of evidence to have violated subdivision two of this section, shall be liable to the borrower for actual damages.
5. A borrower may be granted injunctive, declaratory, and such other equitable relief as the court deems appropriate in an action to enforce compliance with this section.
6. A court may also award reasonable attorneys' fees to a prevailing borrower in a foreclosure action.
7. The attorney general or the superintendent may enforce the provisions of this section.
8/17/2008North Carolina
2007 North Carolina House Bill No. 2463
B§ 53-243.11.
it shall be unlawful for any person in the course of any mortgage loan transaction:
(11) To improperly influence or attempt to improperly influence the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan.
6/6/2008Ohio
SB185 Ohio Home Ownership Protection Act
Shall not knowingly compensate, instruct, induce, coerce, or intimidate, or attempt to compensate, instruct, induce, coerce, or intimidate, a person licensed or certified under Chapter 4763. of the Revised Code for the purpose of corrupting or improperly influencing the independent judgment of the person with respect to the value of the dwelling offered as security for repayment of a mortgage loan;
2/4/2008Oregon
2008 Oregon Senate Bill No. 1090
SECTION 5. (1) A creditor making or a mortgage broker providing services related to a home loan may not:
(e) Influence or attempt to influence, by means of coercion, intimidation or direct or indirect compensation, an appraiser's independent judgment concerning the value of real estate purchased with financing from or offered as security for a home loan.
SECTION 7. (1) The Director of the Department of Consumer and Business Services may investigate and by order prohibit acts or practices associated with advertising, originating, brokering, negotiating, making or servicing home loans that in the director's reasonable judgment are unfair, deceptive or abusive, that are intended to evade the requirements of sections 2 to 9 of this 2008 Act or that are otherwise not in the best interest of persons who are or who seek to become borrowers.
(2) After making a finding that an act or practice described in subsection (1) of this section is unfair, deceptive or abusive or is intended to evade the requirements of sections 2 to 9 of this 2008 Act, the director may, in the manner provided by law, commence an action in the name of this state for an injunction to restrain or prevent the act or practice and to require compliance with the provisions of sections 2 to 9 of this 2008 Act. If the court finds for the director, the court shall grant an injunction or other equitable relief in addition to any other relief the court deems proper.
(3) The director may impose a civil penalty under ORS 183.745 in an amount not to exceed $50,000 for each violation of a provision of sections 2 to 9 of this 2008 Act. The director may impose separate penalties for each person's violation even if each person's violation occurred as part of the same transaction.
SECTION 9. (1) In addition to any action that the Director of the Department of Consumer and Business Services or the Attorney General may take under sections 2 to 9 of this 2008 Act, a borrower may bring an action for damages that the borrower sustains as a result of a violation of a provision of sections 2 to 9 of this 2008 Act.
(2) If a court finds that a defendant in an action under this section knowingly violated a provision of sections 2 to 9 of this 2008 Act, in addition to any other award of damages for violating a provision of sections 2 to 9 of this 2008 Act, the court shall award the borrower treble the amount of the actual damages, including but not limited to incidental and consequential damages, sustained as a result of the knowing violation.
(3) A court may award reasonable attorney fees, costs and expenses to a borrower prevailing in an action under this section. If a court finds that the borrower brought the action in bad faith or solely for purposes of harassment, the court may award reasonable attorney fees to the prevailing defendant.
4/29/2008South Carolina
2007 South Carolina Senate Bill No. 1090
Section 37-22-200. it is unlawful for a person, in the course of a mortgage loan transaction, to:
(10) influence or attempt to influence through coercion, extortion, or bribery, the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan.
1/23/2008South Dakota
2008 South Dakota House Bill No. 1270
Section 4. chapter 54-14
No mortgage lender, mortgage broker, or mortgage loan originator, required to be licensed or registered by this chapter, with an interest in a real estate transaction or the financing of any loan secured by real estate involving an appraisal assignment may improperly influence or attempt to improperly influence the development, reporting, result, or review of a real estate appraisal by:
(1) Coercion, extortion, or bribery;
(2) Withholding or threatened withholding of payment for an appraisal fee;
(3) Conditioning of the payment of an appraisal fee upon the opinion, conclusion, or valuation to be reached;
(4) Requesting that the appraiser report a predetermined opinion, conclusion, or valuation or the desired valuation of any person; or
(5) Any other act or practice that (impairs or attempts to impair an appraiser's independence, objectivity, and impartiality. A violation of this section may constitute grounds for discipline against a mortgage lender, mortgage broker, or mortgage loan originator who is licensed or registered pursuant to this chapter.
7/1/2005Tennessee
2005 Tennessee House Bill No. 1714
SECTION 5. (a) No lender shall: (2) Coerce, intimidate or directly or indirectly compensate an appraiser for the purpose of influencing such appraiser's independent judgment concerning the value of real estate that is to be covered by a home loan or is being offered as security according to an application for a home loan;
SECTION 7. (a) Any person found by a preponderance of the evidence to have violated this act shall be liable to the borrower for the following:
(1) Actual damages, including consequential and incidental damages;
(2) Statutory damages equal to the recovery of two (2) times the interest paid under the loan and forfeiture of interest under the loan for any violation of this chapter; (3) Punitive damages equal to twice the amount of actual damages in the case of willful violations or three
(3) times the amount of actual damages in the case of knowing violations;
And (4) Costs and reasonable attorney fees.
3/9/2007Texas
2007 Texas House Bill No. 3762
Sec.156.215. (10)A mortgage broker may not attempt to influence through direct or indirect means the outcome of a real estate appraisal sought in connection with a mortgage loan, or otherwise engage in a practice or course of business that induces or attempts to induce a real estate appraiser to violate the Uniform Standards of Professional Appraisal Practice in connection with a mortgage loan.
A mortgage broker found by a preponderance of the evidence to have violated this chapter is liable to the applicant for: (1) actual damages, including consequential damages; (2)not less than three times the fees received by the mortgage broker; (3)punitive damages if the mortgage broker violated this chapter recklessly or maliciously; (4) [and] reasonable attorney's fees and court costs; and (5)any relief to which the applicant may be entitled under other law. (d)A remedy available to a mortgage applicant under this chapter, common law, or other statutory law is supplemental to the authority of the commissioner to impose disciplinary action or otherwise enforce this chapter. (e)Without regard to whether a mortgage applicant acts individually or on behalf of another similarly situated, a provision of an agreement with a mortgage broker limiting any claim or defense an applicant may have or allowing a party to require an applicant to assert a claim or defense in a forum that is less convenient, more costly, or more dilatory for the resolution of a dispute than a judicial forum established in this state, when the applicant may otherwise properly bring a claim or defense, is unconscionable and void.
1/9/2009Utah
2009 Utah Senate Bill No. 31, Utah Fifty-Eighth Legislature - 2009 General Session (Prefiled)
Section 19. Section 61-2c-301 is amended to read: 61-2c-301. Prohibited conduct -- Violations of the chapter. A person transacting the business of residential mortgage loans in this state may not: (e) give or receive compensation or anything of value, or withhold or threaten to withhold payment of an appraiser fee, to influence the independent judgment of an appraiser in reaching a value conclusion in a residential mortgage loan transaction
2/27/2006Washington
WAC 208-620-550 (Amending WSR 06-04-053)
AMENDATORY SECTION (Amending WSR 06-04-053, filed 1/27/06, effective 2/27/06) WAC 208-620-550 What business practices are prohibited? Under RCW 31.04.027, the following constitute an "unfair or deceptive" act or practice: (6) Influencing appraisers. Making any payment, directly or indirectly, or withholding or threatening to withhold any payment, to any appraiser of a property, for the purposes of influencing the independent judgment of the appraiser with respect to the value of the property;
1/9/2008West Virginia
2008 West Virginia Senate Bill No. 94
(m) In making any primary or subordinate mortgage loan, no licensee may, and no primary or subordinate mortgage lending transaction may, contain terms which:
(2) Compensate, whether directly or indirectly, coerce or intimidate an appraiser for the purpose of influencing the independent judgment of the appraiser with respect to the value of real estate that is to be covered by a deed of trust or is being offered as security according to an application for a primary or subordinate mortgage loan;