BILL NUMBER: SB 1000	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 8, 2010

INTRODUCED BY   Senator Correa

                        FEBRUARY 9, 2010

   An act to add Section 2951 to the Civil Code, relating to mortgage
appraisals.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1000, as amended, Correa. Mortgages and deeds of trust:
portable appraisals.
   Existing law governs mortgages and deeds of trust on real
property.
   This bill would provide that, except as otherwise provided by
federal law, if a person has applied to a lender for a loan secured
by a mortgage or deed of trust on owner-occupied residential real
property and he or she provides to that lender a copy of a previously
completed appraisal of the same residential real property that is
the subject of the loan application and that appraisal meets
specified criteria, that appraisal shall be accepted by that lender
for purposes of determining whether to approve the loan application.
This provision would also prohibit the lender from requiring the loan
applicant to obtain a new appraisal of the property as a condition
of approval of the loan.  These requirements would not apply
under a specified circumstance. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2951 is added to the Civil Code, to read:
   2951.  (a) Except as otherwise provided by federal law, if a
person has applied to a lender for a loan secured by a mortgage or
deed of trust on owner-occupied residential real property in this
state, and he or she provides to that lender a copy of a previously
completed appraisal of the property that meets the requirements set
forth in subdivision (b), both of the following shall apply:
   (1) The appraisal shall be accepted by that lender for purposes of
determining whether to approve the loan application.
   (2) The lender may not require the applicant to obtain a new
appraisal of the residential real property as a condition of approval
of the loan. 
   (3) For the purpose of this subdivision, "provides" means that the
applicant has the appraiser supply the appraisal to the lender. The
appraiser may charge a fee to cover the actual cost of supplying the
appraisal but in no case shall the fee exceed ten dollars ($10).

   (b) An appraisal described in this subdivision shall comply with
all of the following:
   (1) The appraisal shall be in compliance with the standards of the
Uniform Standards of Professional Appraisal Practice.
   (2) The appraisal shall be an appraisal of the same residential
real property that is the subject of the loan application described
in subdivision (a).
   (3) The appraisal shall have been completed not more than 
____   three  months prior to the date of the loan
application described in subdivision (a). 
   (c) The requirements set forth in this section shall not apply if
the lender does not require the applicant to pay for the preparation
of a new appraisal.