83R9038 ATP-D
By: Carter H.B. No. 2865
A BILL TO BE ENTITLED
AN ACT
relating to certain notifications to borrowers required for home
equity loans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 343, Finance Code, is
amended by adding Section 343.107 to read as follows:
Sec. 343.107. NOTICES REGARDING HOME EQUITY LOANS. (a) In
this section, "home equity loan" means an extension of credit
described by Section 50(a)(6), Article XVI, Texas Constitution.
(b) If any term of a home equity loan is modified, the lender
shall promptly notify the borrower in writing of the modification.
(c) If an application for a home equity loan is incomplete,
the lender shall promptly notify the prospective borrower of the
deficiency in the application to allow, to the extent possible, the
borrower to provide the required information before any applicable
deadline for completion of the application.
SECTION 2. Section 343.107(c), Finance Code, as added by
this Act, applies only to an application for a loan submitted on or
after the effective date of this Act. An application submitted
before the effective date of this Act is governed by the law in
effect when the application was submitted, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2013.