Calderon
Author
Existing law, the Real Estate Law, provides for the licensure and regulation of real estate brokers and real estate salespersons by the Real Estate Commissioner and makes a willful violation of the act a crime. Existing law authorizes the commissioner to temporarily suspend or permanently revoke a real estate license when the licensee has been guilty of generating an inaccurate opinion of the value of residential real property in connection with a certain real estate transaction in order to, among other things, acquire a financial or business advantage that directly results from the inaccurate opinion of value. This bill would delete that provision and would instead prohibit a licensee from knowingly or intentionally misrepresenting the value of real property. The bill would also prohibit a licensee that offers or provides an opinion of value of residential real property related to the origination of a mortgage loan from having a prohibited interest in the property, as specified under federal law. Existing law, the Real Estate Appraisers' Licensing and Certification Law, provides for the licensure and regulation of real estate appraisers and appraisal management companies and makes a willful violation of the law a crime. Existing law prohibits an appraisal management company from improperly influencing any appraisal by engaging in certain activities. This bill would revise that provision by prohibiting an appraisal management company from improperly influencing any appraisal through coercion, extortion, inducement, collusion, bribery, intimidation, compensation, or instruction. The bill would specifically prohibit certain acts, including, but not limited to, seeking to influence an appraiser to report a minimum or maximum value for specified property, implying to an appraiser that his or her retention depends on his or her estimate of the real property value, excluding an appraiser from future engagement because he or she reported a value that does not meet or exceed a certain threshold, and conditioning compensation paid to an appraiser on consummation of the real estate transaction. The bill would also prohibit a person or entity preparing an appraisal or performing appraisal management functions for certain mortgage loan transactions from having a prohibited interest in the property or the transaction, as specified under federal law, for which the appraisal or functions are performed. Existing law prohibits a person with an interest in a real estate transaction involving an appraisal from improperly influencing or attempting 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, and specifies that a violation of this provision by a person licensed under a state licensing law also constitutes a violation of that law. This bill would instead make that provision applicable to a valuation and would define a valuation as an estimate of the value of real property in written or electronic form, other than one produced solely by an automated model or system. The bill would also enumerate specified prohibited acts under that provision, including, but not limited to, seeking to influence a valuation preparer to report a minimum or maximum value for specified property, implying to a valuation preparer that his or her retention depends on his or her estimate of the real property value, excluding a valuation preparer from future engagement because he or she reported a value that does not meet or exceed a certain threshold, and conditioning compensation paid to a valuation preparer on consummation of the real estate transaction. Because a willful violation of the bill's requirements would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Chaptered by Secretary of State. Chapter 716, Statutes of 2011.
Approved by the Governor.
Enrolled and presented to the Governor at 3:30 p.m.
Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2318.) Ordered to engrossing and enrolling.
Ordered to special consent calendar.
Read third time. Passed. (Ayes 78. Noes 0. Page 2595.) Ordered to the Senate.
In Senate. Concurrence in Assembly amendments pending.
Read second time. Ordered to consent calendar.
From committee: Do pass. Ordered to consent calendar. (Ayes 17. Noes 0.) (August 17).
From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 11. Noes 0.) (June 27). Re-referred to Com. on APPR.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.
From committee: Do pass and re-refer to Com. on B. & F. (Ayes 9. Noes 0.) (June 14). Re-referred to Com. on B. & F.
Referred to Coms. on B., P. & C.P. and B. & F.
In Assembly. Read first time. Held at Desk.
Read third time. Passed. (Ayes 39. Noes 0. Page 1064.) Ordered to the Assembly.
Ordered to special consent calendar.
Read second time. Ordered to third reading.
From committee: Be placed on second reading file pursuant to Senate Rule 28.8.
Set for hearing May 16.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0. Page 847.) (May 2). Re-referred to Com. on APPR.
Set for hearing May 2.
Read second time and amended. Re-referred to Com. on B., P. & E.D.
From committee: Do pass as amended and re-refer to Com. on B., P. & E.D. (Ayes 7. Noes 0. Page 579.) (April 6).
From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.
Set for hearing April 6.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.
Referred to Coms. on B. & F.I. and B., P. & E.D.
From printer. May be acted upon on or after January 6.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB6 | HTML |
| 12/06/10 - Introduced | |
| 02/18/11 - Amended Senate | |
| 03/25/11 - Amended Senate | |
| 04/11/11 - Amended Senate | |
| 06/15/11 - Amended Assembly | |
| 07/07/11 - Amended Assembly | |
| 09/08/11 - Enrolled | |
| 10/09/11 - Chaptered |
| Document | Format |
|---|---|
| No related documents. |
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