Texas House Bill HJR20

Texas 2023 - 88th Regular

• Filed: 11/14/22
• Out of House Committee: 3/30/23
• Voted on by House: 4/27/23

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

The implementation of HJR20 would lead to significant modifications in Texas's existing home equity lending framework. By enabling exceptions to the closure requirements, it could facilitate faster access to equity for homeowners, especially in non-traditional scenarios. The change could potentially stimulate borrowing against home equity, which is of particular interest to constituents who may have previously felt constrained by the existing stipulations. This proposed change aligns with broader trends seeking to enhance consumer access to credit while maintaining some level of consumer protection inherent in the current law.

Summary

HJR20 seeks to propose a constitutional amendment that will allow the legislature to create exceptions to the current requirement stipulating that home equity loans be closed only at the office of the lender, an attorney at law, or a title company. This amendment aims to increase flexibility in home equity transactions, potentially accommodating situations in which borrowers may face challenges meeting the existing closing regulations. By empowering the legislature to set these exceptions, the amendment signifies a shift in the regulatory landscape for home equity lending in Texas.

Sentiment

The sentiment around HJR20 generally appears to be supportive, particularly among legislators concerned with easing borrowing processes for homeowners. Proponents argue that this flexibility will benefit many residents and improve access to necessary funds in times of financial need. Conversely, there may be skepticism among advocates for consumer protection, who worry that relaxing these closure requirements could expose borrowers to risks, especially if they are not fully informed of their rights and obligations under home equity loans.

Contention

A notable point of contention regarding HJR20 is the balance between increasing accessibility to home equity loans while ensuring consumer protections remain intact. Supporters of the amendment argue it will allow homeowners more freedom and options, which can be beneficial in pressing financial situations. However, critics fear that loosening the current regulations may lead to situations where borrowers could be misled or taken advantage of during the loan process, resulting in potential negative long-term impacts on their financial stability. This debate centers on how best to facilitate equitable access to credit without compromising consumer safeguards.