Texas House Bill HB3252

Texas 2009 - 81st Regular

• Out of House Committee: 5/11/09

Caption

Relating to the liability of a lender in relation to certain high-cost home loans.

Impact

By amending Subchapter C, Chapter 343 of the Finance Code, the bill grants borrowers the right to claim not only actual damages but also injunctive relief against the lender. Additionally, the provision for recovering reasonable attorney's fees strengthens the legal position of borrowers, ensuring that they are not deterred from seeking justice due to potential legal expenses. This could encourage more borrowers to pursue rightful claims against lenders who violate lending laws, thus enhancing consumer protection within the housing finance sector.

Summary

House Bill 3252 focuses on enhancing the liability of lenders in regard to high-cost home loans. It introduces provisions that hold lenders accountable for violations related to high-cost loans, establishing that borrowers can seek compensation for actual damages resulting from such violations. The bill aims to protect consumers in the lending process, particularly those subjected to high-cost loans which may exploit vulnerable borrowers.

Contention

While the bill aims to bolster protections for borrowers, there may be concerns from lenders regarding the increased liability and financial risks associated with high-cost loan agreements. Lenders might argue that this increased liability could lead to more cautious lending practices or higher costs passed on to consumers, potentially limiting access to credit for some borrowers. The balance between protecting consumers and allowing lenders to operate without excessive liability is likely to be a topic of debate as this bill progresses through the legislative process.