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