Texas Senate Bill SJR60

Texas 2017 - 85th Regular

Caption

Proposing a constitutional amendment establishing a lower amount for expenses that can be charged to a borrower and removing certain financing expense limitations for a home equity loan, establishing certain authorized lenders to make a home equity loan, changing certain options for the refinancing of home equity loans, changing the threshold for an advance of a home equity line of credit, and allowing home equity loans on agricultural homesteads.

Impact

If enacted, the amendment would significantly impact existing statutes governing home equity loans in Texas. It establishes a more consumer-friendly framework by which home equity loans can be refinanced with more favorable terms, including potential reductions in upfront costs for borrowers. Additionally, the amendment ensures that the current limitations on fees involved in home equity loans are updated, which could benefit many homeowners looking to leverage their home equity for financing.

Summary

SJR60 proposes a constitutional amendment to amend the Texas Constitution regarding home equity loans. The amendment seeks to lower the amount of fees that can be charged to borrowers, remove certain limitations on financing expenses for home equity loans, and authorize specific lenders to provide these loans. Furthermore, it allows home equity loans on agricultural homesteads. The intended effect of the bill is to broaden access to home equity loans while ensuring that the fees associated with these loans remain manageable for borrowers. These changes aim to facilitate more favorable borrowing conditions within the state.

Sentiment

The sentiment around SJR60 appears to be generally supportive among legislators, as evidenced by its unanimous passage in both the Senate and the House with votes of 30-0 and 143-0, respectively. This overwhelming approval indicates a broad consensus on the necessity and benefits of promoting more accessible home equity loan options within the state. However, it is expected that there may be some opposition from consumer protection advocates who could be concerned about the implications of such changes for overall consumer rights.

Contention

Notable points of contention surrounding SJR60 could stem from the balance between making loans more accessible and ensuring adequate consumer protections are maintained. While the proposal aims to facilitate easier access to financing for homeowners, some may argue that lowering fee limits and removing certain financing restrictions could inadvertently expose borrowers to higher risks, particularly in volatile economic conditions. Ensuring that such amendments do not undermine consumer protections will likely be a critical focus during discussions around the implementation of this constitutional amendment.