| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 81R13396 JE-D | |
| 2 | 2 | By: Thompson H.B. No. 3179 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | A BILL TO BE ENTITLED | |
| 6 | 6 | AN ACT | |
| 7 | 7 | relating to the requirement of a net benefit in connection with a | |
| 8 | 8 | home loan that refinances an existing loan. | |
| 9 | 9 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 10 | 10 | SECTION 1. Subchapter B, Chapter 343, Finance Code, is | |
| 11 | 11 | amended by adding Section 343.106 to read as follows: | |
| 12 | 12 | Sec. 343.106. NET BENEFIT REQUIRED. A lender may not make a | |
| 13 | 13 | home loan to a borrower that refinances an existing home loan if the | |
| 14 | 14 | new loan does not have a reasonable, tangible net benefit to the | |
| 15 | 15 | borrower considering all of the circumstances, including the terms | |
| 16 | 16 | of the new and refinanced loans and the borrower's stated loan | |
| 17 | 17 | objectives, repayment ability, current and expected income, and | |
| 18 | 18 | current obligations. | |
| 19 | 19 | SECTION 2. The change in law made by this Act applies only | |
| 20 | 20 | to a loan closed on or after the effective date of this Act. A loan | |
| 21 | 21 | closed before the effective date of this Act is governed by the law | |
| 22 | 22 | in effect when the loan was closed, and the former law is continued | |
| 23 | 23 | in effect for that purpose. | |
| 24 | 24 | SECTION 3. This Act takes effect September 1, 2009. |