TX
Texas House Bill HJR131

Texas 2015 - 84th Regular

Texas House Bill HJR131

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Sent toSOS
 
Proposed Const. Amend.
 

Caption

Proposing a constitutional amendment concerning fees that are subject to the maximum allowable limit to obtain a home equity loan.

Impact

The proposed amendment would significantly impact state laws surrounding lending practices by establishing clearer guidelines for home equity loans. By capping the fees charged by lenders, HJR131 aims to enhance transparency and protect homeowners from excessive loan costs. This could lead to an increase in home equity loan accessibility for consumers who may have previously found the fees prohibitive. Moreover, the changes might encourage lenders to adjust their practices to remain compliant with the new regulations, potentially shifting the lending landscape.

Summary

HJR131 is a joint resolution proposing a constitutional amendment concerning the fees related to home equity loans in Texas. Specifically, it seeks to amend Sections 50(a) and (g) of Article XVI of the Texas Constitution. The amendment aims to clarify the conditions under which these loans may be secured by a lien on a borrower's homestead property, particularly focusing on limiting fees charged by lenders to 3% of the loan amount. This is intended to provide better consumer protection for homeowners accessing home equity loans.

Contention

Notable points of contention surrounding HJR131 include concerns from some financial institutions regarding the feasibility of a cap on fees. Critics argue that such limitations could affect loan availability and the willingness of lenders to extend credit to homeowners. Advocates for the bill, on the other hand, argue that it is a necessary measure to safeguard consumers from predatory lending practices. The discourse reflects a broader debate regarding the balance between consumer protection and the operational interests of lenders within the state.

Latest HJR131 Activity

Companion Bills

No companion bills found.

Similar Bills

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