Texas House Bill HJR104

Texas 2021 - 87th Regular

Caption

Proposing a constitutional amendment authorizing the legislature to provide for exceptions to the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.

Impact

If enacted, HJR104 would alter Sections 50(a) and (g) of Article XVI of the Texas Constitution, thereby allowing the legislature to create exceptions that could result in home equity loans closing outside of the currently mandated locations. This change could streamline the process for some borrowers, potentially making it easier for them to access funds when needed. Additionally, the proposed amendment may enhance borrowing opportunities by allowing alternative arrangements that may be deemed necessary in specific circumstances.

Summary

HJR104 proposes a constitutional amendment in Texas that would allow the legislature to establish exceptions to the existing requirement that home equity loans must close at the office of the lender, an attorney, or a title company. The proposed changes aim to provide flexibility for homeowners and lenders while still protecting consumer rights. This amendment is significant as it impacts the processes surrounding home equity lending, a common practice among homeowners looking to leverage the equity in their properties for financial purposes.

Conclusion

Overall, HJR104 represents a pivotal change in the regulation of home equity loans within Texas. It emphasizes a balance between providing residents with more flexible lending options while also striving to maintain sufficient consumer protections in the home equity lending market. The upcoming election, where voters will decide on this amendment, will ultimately shape the future landscape of home equity financing in the state.

Contention

Notably, this bill has raised points of contention regarding the implications for consumer protection and the risk of predatory lending practices. Critics argue that relaxing the closing requirements could lead to less oversight and an increased risk for consumers, particularly those who may not fully understand the terms of the loans they are entering into. Proponents, however, contend that the flexibility could foster a more competitive lending environment, potentially benefiting consumers through better rates and terms.