SB 555 Summary

• Amends the definition of "mortgage loan" to clarify that land contracts are not included and replaces references to "deed of trust" with "another equivalent consensual security interest."

• Prohibits persons from engaging in any act or practice that violates appraisal independence standards under federal Truth in Lending Act Section 129E for real estate transactions involving residential mortgage loans on principal dwellings.

• Bans the use of broker price opinions as the primary basis to determine property value when originating residential mortgage loans for purchases of a consumer's principal dwelling.

• Exempts appraisal management companies that are subsidiaries of federally-regulated financial institutions from obtaining a state certificate of registration.

• Requires appraisal management companies providing services for residential mortgage loans to have no direct or indirect interest in the property or transaction, and restricts them from hiring licensed real estate brokers to perform appraisals in federally-related transactions.

• Changes appraisal review requirements to mandate that only licensed or certified appraisers (not real estate brokers) may perform appraisal reviews.