Suspending limitations on conference committee jurisdiction, H.B. No. 213.
If enacted, SR1257 would result in amendments to the existing finance laws in Texas. Specifically, it would eliminate the authorization for private causes of action for borrowers injured by violations of the newly added provisions concerning residential loans. This change means that while borrowers may still seek redress, the specific legal recourse outlined in the original bill would no longer be available, potentially limiting consumer protections related to residential loans.
Senate Resolution 1257, passed by the Texas Senate during the 82nd Legislature in 2011, proposes a suspension of Senate Rule 12.03 to facilitate the conference committee's consideration of House Bill 213, which focuses on loans secured by liens on residential property. The resolution aims to enable the committee to address text discrepancies, particularly relating to the omission of provisions that allowed for private legal actions under the new Chapter 397 of the Finance Code. This legislative move is primarily intended to streamline the legislative process regarding financial transactions involving residential real estate.
The sentiment around SR1257 reflects divided opinions, primarily among legislators and interest groups concerned with consumer rights. Supporters of the resolution often argue that the amendment is necessary for maintaining the integrity of financial regulations, ensuring that the legislative framework does not foster excessive litigation against lenders. Conversely, opponents express concern that removing private action rights could weaken consumer protections, particularly for vulnerable borrowers involved in residential transactions.
The notable points of contention regarding SR1257 focused largely on the implications of removing a borrower's right to sue for damages due to violations of the finance laws. Advocates for consumer protection argue that such rights are vital for ensuring accountability in the lending industry, especially in a state where residential property transactions are prevalent. The tension between upholding financial regulations and protecting consumer rights remains a central theme in discussions surrounding this resolution.