Proposing a constitutional amendment to authorize the making of a reverse mortgage loan for the purchase of homestead property and to amend certain requirements in connection with a reverse mortgage loan.
Impact
The bill intends to impact state laws concerning home financing by expanding the scope of reverse mortgages. It specifically seeks to amend Section 50(k) of Article XVI of the Texas Constitution, ensuring that reverse mortgage loans are defined in a manner that includes provisions for purchasing homestead properties. By doing so, it clarifies what constitutes a reverse mortgage and introduces consumer protections regarding loan repayments, foreclosures, and other requirements. This change would aim to create a safer borrowing environment for older citizens, potentially influencing existing housing finance regulations.
Summary
SJR18 proposes a constitutional amendment to authorize reverse mortgage loans for the purchase of homestead properties and to amend certain existing requirements related to such loans. The bill is aimed at facilitating access to financing options for elderly homeowners, allowing them to leverage the equity in their properties for purchasing new homes, providing them with an opportunity to downsize or relocate without the burden of immediate repayment schedules. The proposed amendment includes specific protections for borrowers, thereby creating structured guidelines for such financial products that are sensitive to the needs of the elderly population.
Contention
Notable points of contention surrounding SJR18 include concerns about the implications of reverse mortgage agreements on the financial stability of elderly homeowners. Critics may argue that while the bill provides new opportunities for liquidity, it also poses risks related to long-term housing security. Issues may arise regarding the potential for foreclosure if borrowers fail to meet certain obligations such as property maintenance or tax payments. The requirement for borrowers to forgo tax deferral statuses could also raise objections from those wary of additional financial burdens. Overall, balancing the benefits of increased access to reverse mortgages with adequate protections against predatory lending and financial exploitation is a critical concern that proponents and opponents would likely debate.
Proposing a constitutional amendment authorizing the legislature to provide for exceptions to the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.
Proposing a constitutional amendment to remove the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.
Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a residence homestead for ad valorem tax purposes is the market value of the property for the first year that the owner qualified the property for a homestead exemption or, if the owner purchased the property, the purchase price of the property.
Relating to the authority of the owner of a residence homestead to receive a discount for making an early payment of the ad valorem taxes on the homestead.
Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a residence homestead for ad valorem tax purposes for the first tax year that the owner of the property qualifies the property for a residence homestead exemption is the market value of the property and that, if the owner purchased the property, the purchase price of the property is considered to be the market value of the property for that tax year and to limit increases in the appraised value of the homestead for subsequent tax years based on the inflation rate.
Proposing a constitutional amendment to authorize the legislature to establish a limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes.