CHAPTER 23.5. REAL ESTATE APPRAISALS
IC 24-5-23.5
Chapter 23.5. Real Estate Appraisals
IC 24-5-23.5-1
"Appraisal"
Sec. 1. (a) As used in this chapter, "appraisal" means anestimation that:
(1) represents the final opinion of the value of real property thatis the subject of a real estate transaction; and
(2) serves as the basis for the extension of credit, in the case ofa real estate transaction involving the making, refinancing, orconsolidation of a mortgage loan.
(b) The term may include any of the following:
(1) The results of an automated valuation model.
(2) A broker's price opinion.
(3) A desktop evaluation.
As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-2
"Appraisal company"
Sec. 2. As used in this chapter, "appraisal company" means a soleproprietorship, firm, corporation, partnership, limited liabilitycompany, limited liability partnership, joint venture, trust, or otherbusiness unit or association that:
(1) performs appraisals on a regular basis for compensationthrough one (1) or more owners, officers, employees, or agents;or
(2) holds itself out to the public as performing appraisals.
As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-3
"Creditor"
Sec. 3. (a) As used in this chapter, "creditor" means a person:
(1) that regularly engages in Indiana in the extension ofmortgage loans that are subject to a credit service charge or loanfinance charge, as applicable, or are payable by writtenagreement in more than four (4) installments (not including adown payment); and
(2) to whom the obligation arising from a mortgage loan isinitially payable, either on the face of the note or contract, or byagreement if there is not a note or contract.
(b) The term does not include a person described in:
(1) IC 24-9-2-6(a)(2) if the person described inIC 24-9-2-6(a)(2) is not the person extending the credit in thetransaction; or
(2) IC 24-9-2-6(b).
As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-4
"Mortgage loan" Sec. 4. (a) As used in this chapter, "mortgage loan" means a loanin which a mortgage, deed of trust, or land contract that constitutesa lien is created or retained against an interest in real property inIndiana.
(b) The term includes the following:
(1) A home loan subject to IC 24-9.
(2) A loan described in IC 24-9-1-1, to the extent allowed underfederal law.
(3) A first lien mortgage transaction (as defined inIC 24-4.4-1-301) subject to IC 24-4.4.
(4) A consumer credit sale subject to IC 24-4.5-2 in which amortgage, deed of trust, or land contract that constitutes a lienis created or retained against an interest in real property inIndiana.
(5) A consumer credit loan subject to IC 24-4.5-3 in which amortgage, deed of trust, or land contract that constitutes a lienis created or retained against an interest in real property inIndiana.
(6) A loan in which a mortgage, deed of trust, or land contractthat constitutes a lien is created or retained against land:
(A) that is located in Indiana;
(B) upon which there is a dwelling that is not or will not beused by the borrower primarily for personal, family, orhousehold purposes; and
(C) that is classified as residential for property tax purposes.
The term includes a loan that is secured by land in Indiana uponwhich there is a dwelling that is purchased by or through theborrower for investment or other business purposes.
As added by P.L.52-2009, SEC.2. Amended by P.L.35-2010, SEC.88.
IC 24-5-23.5-5
"Real estate appraiser"
Sec. 5. As used in this chapter, "real estate appraiser" means aperson who prepares the appraisal for a real estate transaction inIndiana, regardless of whether the person is licensed or certified, orrequired to be licensed or certified, under the real estate appraiserlicensure and certification program established under IC 25-34.1-3-8.
As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-6
"Real estate transaction"
Sec. 6. As used in this chapter, "real estate transaction" means atransaction that involves one (1) or both of the following:
(1) The sale or lease of any legal or equitable interest in realestate located in Indiana.
(2) The making, refinancing, or consolidation of a mortgageloan.
As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-7 Prohibition against corrupting or improperly influencing a realestate appraiser or an appraisal
Sec. 7. A person shall not corrupt or improperly influence, orattempt to corrupt or improperly influence:
(1) the independent judgment of a real estate appraiser withrespect to the value of the real estate that is the subject of a realestate transaction; or
(2) the development, reporting, result, or review of an appraisalprepared in connection with a real estate transaction;
through bribery, coercion, extortion, intimidation, collusion, or anyother manner.
As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-8
Creditor's duty to provide notice concerning homeownerprotection unit's contact information and borrower's right toinspect settlement statement before closing; unit to prescribe formof notice; promotion of unit's contact information; informationsharing; exemption from liability for disclosing suspectedviolation; report to legislative council of complaints received
Sec. 8. (a) This subsection applies with respect to a completedapplication for a mortgage loan that is received by a creditor afterDecember 31, 2009. A creditor shall, not later than three (3) businessdays after receiving a completed written application for a mortgageloan from a borrower or prospective borrower, provide to theborrower or prospective borrower a notice, on a form prescribed bythe homeowner protection unit under subsection (b), that includes thefollowing:
(1) Contact information for the homeowner protection unitestablished by the attorney general under IC 4-6-12, including:
(A) an electronic mail address for the homeowner protectionunit; and
(B) the toll free telephone number described inIC 4-6-12-3.5.
(2) A statement that the borrower or prospective borrower maycontact the homeowner protection unit to report:
(A) a suspected violation of section 7 of this chapter; or
(B) other information about suspected fraudulent residentialreal estate transactions, as authorized by IC 4-6-12-3.5(b).
(3) A statement that the borrower in a real estate transactionthat involves the making, refinancing, or consolidation of amortgage loan has the right to inspect the HUD-1 or HUD-1Asettlement statement during the business day immediatelypreceding settlement, as provided by the federal Real EstateSettlement Procedures Act (12 U.S.C. 2601 et seq.), asamended.
The creditor shall provide the notice required by this subsection bydelivering it to the borrower or prospective borrower or placing it inthe United States mail to the borrower or prospective borrowerwithin the time prescribed by this subsection. (b) Not later than September 1, 2009, the home owner protectionunit established by the attorney general under IC 4-6-12 shallprescribe the form required under subsection (a) for use by creditorswho receive completed written applications for mortgage loans afterDecember 31, 2009.
(c) The homeowner protection unit established by the attorneygeneral under IC 4-6-12, in cooperation with the real estate appraiserlicensure and certification board created by IC 25-34.1-8-1, shallpublicize and promote awareness of the availability of the:
(1) electronic mail address; and
(2) toll free telephone number;
described in subsection (a)(1) to accept complaints from real estateappraisers, creditors, borrowers, potential borrowers, and otherpersons concerning suspected violations of section 7 of this chapter.
(d) A creditor may share any information obtained concerning asuspected violation of section 7 of this chapter with the homeownerprotection unit established by the attorney general under IC 4-6-12.The homeowner protection unit may, in turn, share any informationreceived from a creditor under this subsection with the following:
(1) Federal, state, and local law enforcement agencies andfederal regulatory agencies in accordance withIC 4-6-12-3(a)(4).
(2) Any entity listed in IC 4-6-12-4 that may have jurisdictionover any person who is suspected of violating section 7 of thischapter, including any entity that may have jurisdiction over thecreditor or an agent of the creditor if the homeowner protectionunit suspects that the creditor or an agent of the creditor hasviolated section 7 of this chapter. However, the homeownerprotection unit and any entity listed in IC 4-6-12-4 that receivesinformation under this subdivision shall treat the information,including information concerning the identity of thecomplainant, as confidential and shall exercise all necessarycaution to avoid disclosure of the information, except asotherwise permitted or required by law.
(e) Any:
(1) real estate appraiser, creditor, borrower, potential borrower,or other person that makes, in good faith, a voluntarilydisclosure of a suspected violation of section 7 of this chapterto the homeowner protection unit under this section orotherwise; and
(2) director, officer, manager, employee, or agent of a persondescribed in subdivision (1) who makes, or requires anotherperson to make, a disclosure described in subdivision (1);
is not liable to any person under any law or regulation of the UnitedStates, under any constitution, law, or regulation of any state or apolitical subdivision of any state, or under any contract or otherlegally enforceable agreement, including an arbitration agreement,for a disclosure described in subdivision (1) or for failing to providenotice of a disclosure described in subdivision (1) to any person whois the subject of the disclosure. (f) Beginning in 2009, the report provided by the mortgagelending and fraud prevention task force to the legislative councilunder P.L.145-2008, SECTION 35, must include the followinginformation:
(1) The total number of complaints or reports:
(A) received by the homeowner protection unit during themost recent state fiscal year; and
(B) concerning a suspected violation of section 7 of thischapter.
(2) From the total number of complaints or reports reportedunder subdivision (1), a breakdown of the sources of thecomplaints or reports, classified according to the complainants'interest in or relationship to the real estate transactions uponwhich the complaints or reports are based.
(3) A description of any:
(A) disciplinary or enforcement actions taken; or
(B) criminal prosecutions pursued;
by the homeowner protection unit or any entity listed inIC 4-6-12-4 and having jurisdiction in the matter, as applicable,in connection with the complaints or reports reported undersubdivision (1).
The homeowner protection unit shall make available to the mortgagelending and fraud prevention task force any information necessary toprovide the information required under this subsection in the taskforce's report to the legislative council.
As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-9
Violation a Class A misdemeanor and a deceptive act; action forinjunctive relief by attorney general; civil penalty; cumulativeenforcement procedures
Sec. 9. (a) A person that knowingly or intentionally violatessection 7 of this chapter commits:
(1) a Class A misdemeanor; and
(2) an act that is:
(A) actionable by the attorney general under IC 24-5-0.5;and
(B) subject to the penalties listed in IC 24-5-0.5.
(b) The attorney general may maintain an action in the name ofthe state of Indiana to enjoin a person from violating section 7 of thischapter. A court in which the action is brought may:
(1) issue an injunction;
(2) order the person to make restitution;
(3) order the person to reimburse the state for the attorneygeneral's reasonable costs of investigating and prosecuting theviolation; and
(4) impose a civil penalty of not more than ten thousand dollars($10,000) per violation.
(c) A person that violates an injunction issued under this sectionis subject to a civil penalty of not more than ten thousand dollars
($10,000) per violation. The court that issues the injunction retainsjurisdiction over a proceeding seeking the imposition of a civilpenalty under this subsection.
(d) A civil penalty imposed and collected under this section shallbe deposited in the investigative fund established byIC 25-34.1-8-7.5.
(e) The enforcement procedures established by this section arecumulative and an enforcement procedure available under thissection is supplemental to any other enforcement procedure availableunder:
(1) this section; or
(2) any other state or federal law, rule, or regulation;
for a violation of section 7 of this chapter.
As added by P.L.52-2009, SEC.2.