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 an appraisal has been completed for that lender, in connection with the loan application, that person may instruct the lender to provide a copy of the previously completed appraisal to a second or subsequent lender if that appraisal meets specified criteria, and that appraisal shall be accepted by that second or subsequent 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. This bill would also provide that a second or subsequent lender may not request that an appraiser change the name of a client within an appraisal report, except as specified.