TX
Texas House Bill HB264

Texas 2023 - 88th Regular

Texas House Bill HB264

Filed
11/14/22  
Out of House Committee
3/30/23  
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to requirements for the physical presence of a borrower for signing certain documents related to a home equity loan.

Impact

Upon enactment, this bill enhances the financial landscape for Texans by allowing home equity loans to be finalized without the requirement of in-person attendance. By integrating remote online notarization, the legislation directly supports active military families and other qualifying borrowers who may face logistical challenges in attending physical closings. This development not only streamlines the process but is also expected to encourage more individuals to leverage home equity as a financial resource, thus potentially stimulating the local economy and real estate market.

Summary

House Bill 264 aims to amend existing laws concerning the requirements for the physical presence of borrowers during the closing of home equity loans in Texas. Specifically, the bill facilitates virtual closings for certain individuals, including active duty military personnel, their spouses, and borrowers with disabilities or quarantine restrictions, enhancing accessibility to home equity products. The enabling legislation follows a constitutional amendment and promotes modernizing the closing process, acknowledging the increasing necessity for flexibility in financial transactions, particularly in the context of widespread travel and health considerations.

Sentiment

The general sentiment surrounding HB 264 appears to be positive. Legislators and stakeholders have expressed support for measures that enhance access to financial resources for military members and those with special circumstances. There is recognition of the importance of adapting traditional processes to meet modern demands, particularly in light of recent societal shifts that have emphasized remote interactions. However, there may be concerns regarding the sufficiency of safeguards in remote transactions, particularly about fraud and the authentication of identities in non-traditional settings.

Contention

Notable points of contention may arise concerning the balancing of borrower protection and the convenience of virtual processing. While there is broad agreement on the necessity for modernization, skeptics may voice concerns over the loss of personal interaction in significant financial transactions such as home equity loans. The introduction of power of attorney provisions for representatives acting on behalf of absent borrowers may also lead to discussions regarding the potential for misuse or the nuances of enforcing such authority in a remote context.

Texas Constitutional Statutes Affected

Finance Code

  • Chapter 343. Home Loans
    • Section: New Section
    • Section: New Section
    • Section: New Section

Estates Code

  • Chapter 751. General Provisions Regarding Durable Powers Of Attorney
    • Section: New Section
    • Section: New Section
    • Section: New Section
  • Chapter 752. Statutory Durable Power Of Attorney
    • Section: New Section
    • Section: New Section
    • Section: New Section

Companion Bills

TX HJR20

Enabling for 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.

TX HJR20

Enabling for 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.

Previously Filed As

TX HB957

Relating to requirements for the physical presence of a borrower for signing certain documents related to a home equity loan.

TX HB2284

Relating to the physical presence of a borrower at the closing of a home equity loan.

TX HB2865

Relating to certain notifications to borrowers required for home equity loans.

TX SJR60

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.

TX HJR99

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.

TX SB472

Balance Info To Certain Borrowers

TX HJR90

Proposing a constitutional amendment providing for an exception from the limitation on the maximum principal amount of home equity loans and home equity lines of credit for the refinancing of certain loans secured by the homestead.

TX S1346

Establishes pre-loan counseling requirements and borrower right of rescission for reverse mortgage loans.

TX S2520

Establishes pre-loan counseling requirements and borrower rights of recission for reverse mortgage loans.

TX SB132

An Act To Amend Title 6 Of The Delaware Code Relating To The Student Loan Borrower Bill Of Rights Act.

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