Texas House Bill HB4328

Texas 2019 - 86th Regular

Caption

Relating to certain property tax lenders, property tax loans, and tax liens.

Impact

The changes brought by HB4328 are expected to have significant implications for local laws governing property tax loans and liens. It aims to standardize how property taxes are administered, particularly regarding how lenders can interact with homeowners facing delinquent tax obligations. It introduces necessitated disclosures that property tax lenders will have to maintain, which should help reduce misleading practices and enhance consumer protection.

Summary

House Bill 4328 addresses various aspects of property tax lending and the management of tax liens in Texas. This bill proposes amendments to the existing Tax Code and Finance Code, focusing particularly on transfers of tax liens and regulations governing property tax lenders. The intent is to create clearer guidelines related to the obligations and rights of both property tax lenders and property owners, aiming to improve transparency and fairness in property tax lending practices. One major provision added prohibits property tax lenders or their representatives from holding economic interests in entities that provide legal services related to tax loans.

Contention

While the bill aims to protect property owners and clarify the operations of property tax lenders, some stakeholders may express concerns about potential overreach or burdens imposed on lenders. Debates may arise regarding the balance between protecting homeowners in tax distress and ensuring that lenders can still operate effectively and remain profitable. Furthermore, this legislation could stir discussions on the implications it has for real estate markets, especially in areas with high rates of property tax delinquency.