Texas 2025 - 89th Regular

Texas House Bill HB957 Compare Versions

Only one version of the bill is available at this time.

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1	1	By: Toth H.B. No. 957
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to requirements for the physical presence of a borrower
9	9	for signing certain documents related to a home equity loan.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 343.002(b), Finance Code, is amended to
12	12	read as follows:
13	13	(b) Except as provided by Subchapter D, this [This] chapter
14	14	does not apply to:
15	15	(1) a reverse mortgage; or
16	16	(2) an open-end account, as defined by Section
17	17	301.002.
18	18	SECTION 2. Chapter 343, Finance Code, is amended by adding
19	19	Subchapter D to read as follows:
20	20	SUBCHAPTER D. HOME EQUITY LOANS
21	21	Sec. 343.301. DEFINITION. In this subchapter, "home equity
22	22	loan" means an extension of credit described by Section 50(a)(6),
23	23	Article XVI, Texas Constitution.
24	24	Sec. 343.302. PHYSICAL PRESENCE OF CERTAIN BORROWERS AT
25	25	CLOSING NOT REQUIRED. (a) This section applies to the closing of a
26	26	home equity loan by a borrower who:
27	27	(1) is located outside of this state at the time of the
28	28	closing and is:
29	29	(A) a member of the armed forces of the United
30	30	States who is on active duty;
31	31	(B) an officer of the Commissioned Corps of the
32	32	United States Public Health Service who is on active duty;
33	33	(C) a member of reserve components of the armed
34	34	forces of the United States not described by Paragraph (A) who is on
35	35	active duty;
36	36	(D) the spouse or surviving spouse of a person
37	37	described by Paragraph (A), (B), or (C); or
38	38	(E) a civilian employee of the federal government
39	39	employed by, serving with, or accompanying the armed forces of the
40	40	United States, if assigned to a foreign country or a vessel or unit
41	41	of the armed forces of the United States;
42	42	(2) has a disability that prohibits travel or is
43	43	quarantined to protect the borrower's health or the health of
44	44	others, as verified by a written letter from a physician; or
45	45	(3) is unable to travel to the closing because the
46	46	borrower is incarcerated or under house arrest.
47	47	(b) In lieu of closing a home equity loan in person at the
48	48	office of the lender, an attorney, or a title company, a borrower
49	49	described by Subsection (a) may close the loan:
50	50	(1) from a remote location using remote online
51	51	notarization; or
52	52	(2) through an agent who:
53	53	(A) is acting under a durable power of attorney
54	54	that expressly grants the agent the authority to engage in a home
55	55	equity loan transaction on behalf of the borrower, regardless of
56	56	where the borrower signed the power of attorney; and
57	57	(B) appears in person for the closing at the
58	58	office of the lender, attorney, or title company on behalf of the
59	59	borrower.
60	60	SECTION 3. Section 751.203(b), Estates Code, is amended to
61	61	read as follows:
62	62	(b) A certification described by Subsection (a) may be in
63	63	the following form:
64	64	CERTIFICATION OF DURABLE POWER OF ATTORNEY BY AGENT
65	65	I, ___________ (agent), certify under penalty of perjury
66	66	that:
67	67	1. I am the agent named in the power of attorney validly
68	68	executed by ___________ (principal) ("principal") on ____________
69	69	(date), and the power of attorney is now in full force and effect.
70	70	2. The principal is not deceased and is presently domiciled
71	71	in ___________ (city and state/territory or foreign country).
72	72	3. To the best of my knowledge after diligent search and
73	73	inquiry:
74	74	a. The power of attorney has not been revoked by the
75	75	principal or suspended or terminated by the occurrence of any
76	76	event, whether or not referenced in the power of attorney;
77	77	b. At the time the power of attorney was executed, the
78	78	principal was mentally competent to transact legal matters and was
79	79	not acting under the undue influence of any other person;
80	80	c. A permanent guardian of the estate of the principal
81	81	has not qualified to serve in that capacity;
82	82	d. My powers under the power of attorney have not been
83	83	suspended by a court in a temporary guardianship or other
84	84	proceeding;
85	85	e. If I am (or was) the principal's spouse, my marriage
86	86	to the principal has not been dissolved by court decree of divorce
87	87	or annulment or declared void by a court, or the power of attorney
88	88	provides specifically that my appointment as the agent for the
89	89	principal does not terminate if my marriage to the principal has
90	90	been dissolved by court decree of divorce or annulment or declared
91	91	void by a court;
92	92	f. No proceeding has been commenced for a temporary or
93	93	permanent guardianship of the person or estate, or both, of the
94	94	principal; and
95	95	g. The exercise of my authority is not prohibited by
96	96	another agreement or instrument.
97	97	4. If under its terms the power of attorney becomes
98	98	effective on the disability or incapacity of the principal or at a
99	99	future time or on the occurrence of a contingency, the principal now
100	100	has a disability or is incapacitated or the specified future time or
101	101	contingency has occurred.
102	102	5. I am acting within the scope of my authority under the
103	103	power of attorney, and my authority has not been altered or
104	104	terminated.
105	105	6. If applicable, I am the successor to ___________
106	106	(predecessor agent), who has resigned, died, or become
107	107	incapacitated, is not qualified to serve or has declined to serve as
108	108	agent, or is otherwise unable to act. There are no unsatisfied
109	109	conditions remaining under the power of attorney that preclude my
110	110	acting as successor agent.
111	111	7. I agree not to:
112	112	a. Exercise any powers granted by the power of
113	113	attorney if I attain knowledge that the power of attorney has been
114	114	revoked, suspended, or terminated; or
115	115	b. Exercise any specific powers that have been
116	116	revoked, suspended, or terminated.
117	117	8. A true and correct copy of the power of attorney is
118	118	attached to this document.
119	119	9. If applicable and if used in connection with an extension
120	120	of credit under Section 50(a)(6), Article XVI, Texas Constitution,
121	121	the power of attorney was executed in the office of the lender, the
122	122	office of a title company, or the law office of
123	123	____________________.
124	124	Date: __________, 20__.
125	125	__________________________________ (signature of agent)
126	126	SECTION 4. Section 752.051, Estates Code, is amended to
127	127	read as follows:
128	128	Sec. 752.051. FORM. The following form is known as a
129	129	"statutory durable power of attorney":
130	130	STATUTORY DURABLE POWER OF ATTORNEY
131	131	NOTICE: THE POWERS GRANTED BY THIS DOCUMENT ARE BROAD AND SWEEPING.
132	132	THEY ARE EXPLAINED IN THE DURABLE POWER OF ATTORNEY ACT, SUBTITLE P,
133	133	TITLE 2, ESTATES CODE. IF YOU HAVE ANY QUESTIONS ABOUT THESE POWERS,
134	134	OBTAIN COMPETENT LEGAL ADVICE. THIS DOCUMENT DOES NOT AUTHORIZE
135	135	ANYONE TO MAKE MEDICAL AND OTHER HEALTH-CARE DECISIONS FOR YOU. YOU
136	136	MAY REVOKE THIS POWER OF ATTORNEY IF YOU LATER WISH TO DO SO. IF YOU
137	137	WANT YOUR AGENT TO HAVE THE AUTHORITY TO SIGN HOME EQUITY LOAN
138	138	DOCUMENTS ON YOUR BEHALF, THIS POWER OF ATTORNEY MUST BE SIGNED BY
139	139	YOU AT THE OFFICE OF THE LENDER, AN ATTORNEY AT LAW, OR A TITLE
140	140	COMPANY, UNLESS YOU QUALIFY FOR AN EXCEPTION UNDER SECTION 343.302,
141	141	FINANCE CODE.
142	142	You should select someone you trust to serve as your agent.
143	143	Unless you specify otherwise, generally the agent's authority will
144	144	continue until:
145	145	(1) you die or revoke the power of attorney;
146	146	(2) your agent resigns, is removed by court order, or
147	147	is unable to act for you; or
148	148	(3) a guardian is appointed for your estate.
149	149	I, __________ (insert your name and address), appoint
150	150	__________ (insert the name and address of the person appointed) as
151	151	my agent to act for me in any lawful way with respect to all of the
152	152	following powers that I have initialed below. (YOU MAY APPOINT
153	153	CO-AGENTS. UNLESS YOU PROVIDE OTHERWISE, CO-AGENTS MAY ACT
154	154	INDEPENDENTLY.)
155	155	TO GRANT ALL OF THE FOLLOWING POWERS, INITIAL THE LINE IN
156	156	FRONT OF (O) AND IGNORE THE LINES IN FRONT OF THE OTHER POWERS
157	157	LISTED IN (A) THROUGH (N).
158	158	TO GRANT A POWER, YOU MUST INITIAL THE LINE IN FRONT OF THE
159	159	POWER YOU ARE GRANTING.
160	160	TO WITHHOLD A POWER, DO NOT INITIAL THE LINE IN FRONT OF THE
161	161	POWER. YOU MAY, BUT DO NOT NEED TO, CROSS OUT EACH POWER WITHHELD.
162	162	____ (A) Real property transactions, including home equity
163	163	loan transactions;
164	164	____ (B) Tangible personal property transactions;
165	165	____ (C) Stock and bond transactions;
166	166	____ (D) Commodity and option transactions;
167	167	____ (E) Banking and other financial institution
168	168	transactions;
169	169	____ (F) Business operating transactions;
170	170	____ (G) Insurance and annuity transactions;
171	171	____ (H) Estate, trust, and other beneficiary transactions;
172	172	____ (I) Claims and litigation;
173	173	____ (J) Personal and family maintenance;
174	174	____ (K) Benefits from social security, Medicare, Medicaid,
175	175	or other governmental programs or civil or military service;
176	176	____ (L) Retirement plan transactions;
177	177	____ (M) Tax matters;
178	178	____ (N) Digital assets and the content of an electronic
179	179	communication;
180	180	____ (O) ALL OF THE POWERS LISTED IN (A) THROUGH (N). YOU DO
181	181	NOT HAVE TO INITIAL THE LINE IN FRONT OF ANY OTHER POWER IF YOU
182	182	INITIAL LINE (O).
183	183	SPECIAL INSTRUCTIONS:
184	184	Special instructions applicable to agent compensation
185	185	(initial in front of one of the following sentences to have it
186	186	apply; if no selection is made, each agent will be entitled to
187	187	compensation that is reasonable under the circumstances):
188	188	____ My agent is entitled to reimbursement of reasonable
189	189	expenses incurred on my behalf and to compensation that is
190	190	reasonable under the circumstances.
191	191	____ My agent is entitled to reimbursement of reasonable
192	192	expenses incurred on my behalf but shall receive no compensation
193	193	for serving as my agent.
194	194	Special instructions applicable to co-agents (if you have
195	195	appointed co-agents to act, initial in front of one of the following
196	196	sentences to have it apply; if no selection is made, each agent will
197	197	be entitled to act independently):
198	198	____ Each of my co-agents may act independently for me.
199	199	____ My co-agents may act for me only if the co-agents act
200	200	jointly.
201	201	____ My co-agents may act for me only if a majority of the
202	202	co-agents act jointly.
203	203	Special instructions applicable to gifts (initial in front of
204	204	the following sentence to have it apply):
205	205	____ I grant my agent the power to apply my property to make gifts
206	206	outright to or for the benefit of a person, including by the
207	207	exercise of a presently exercisable general power of appointment
208	208	held by me, except that the amount of a gift to an individual may not
209	209	exceed the amount of annual exclusions allowed from the federal
210	210	gift tax for the calendar year of the gift.
211	211	ON THE FOLLOWING LINES YOU MAY GIVE SPECIAL INSTRUCTIONS
212	212	LIMITING OR EXTENDING THE POWERS GRANTED TO YOUR AGENT.
213	213	________________________________________________________________
214	214	________________________________________________________________
215	215	________________________________________________________________
216	216	________________________________________________________________
217	217	________________________________________________________________
218	218	________________________________________________________________
219	219	________________________________________________________________
220	220	________________________________________________________________
221	221	________________________________________________________________
222	222	UNLESS YOU DIRECT OTHERWISE BELOW, THIS POWER OF ATTORNEY IS
223	223	EFFECTIVE IMMEDIATELY AND WILL CONTINUE UNTIL IT TERMINATES.
224	224	CHOOSE ONE OF THE FOLLOWING ALTERNATIVES BY CROSSING OUT THE
225	225	ALTERNATIVE NOT CHOSEN:
226	226	(A) This power of attorney is not affected by my
227	227	subsequent disability or incapacity.
228	228	(B) This power of attorney becomes effective upon my
229	229	disability or incapacity.
230	230	YOU SHOULD CHOOSE ALTERNATIVE (A) IF THIS POWER OF ATTORNEY
231	231	IS TO BECOME EFFECTIVE ON THE DATE IT IS EXECUTED.
232	232	IF NEITHER (A) NOR (B) IS CROSSED OUT, IT WILL BE ASSUMED THAT
233	233	YOU CHOSE ALTERNATIVE (A).
234	234	If Alternative (B) is chosen and a definition of my
235	235	disability or incapacity is not contained in this power of
236	236	attorney, I shall be considered disabled or incapacitated for
237	237	purposes of this power of attorney if a physician certifies in
238	238	writing at a date later than the date this power of attorney is
239	239	executed that, based on the physician's medical examination of me,
240	240	I am mentally incapable of managing my financial affairs. I
241	241	authorize the physician who examines me for this purpose to
242	242	disclose my physical or mental condition to another person for
243	243	purposes of this power of attorney. A third party who accepts this
244	244	power of attorney is fully protected from any action taken under
245	245	this power of attorney that is based on the determination made by a
246	246	physician of my disability or incapacity.
247	247	I agree that any third party who receives a copy of this
248	248	document may act under it. Termination of this durable power of
249	249	attorney is not effective as to a third party until the third party
250	250	has actual knowledge of the termination. I agree to indemnify the
251	251	third party for any claims that arise against the third party
252	252	because of reliance on this power of attorney. The meaning and
253	253	effect of this durable power of attorney is determined by Texas law.
254	254	If any agent named by me dies, becomes incapacitated,
255	255	resigns, refuses to act, or is removed by court order, or if my
256	256	marriage to an agent named by me is dissolved by a court decree of
257	257	divorce or annulment or is declared void by a court (unless I
258	258	provided in this document that the dissolution or declaration does
259	259	not terminate the agent's authority to act under this power of
260	260	attorney), I name the following (each to act alone and
261	261	successively, in the order named) as successor(s) to that agent:
262	262	__________.
263	263	Signed this ______ day of __________, _____________
264	264	___________________________
265	265	(your signature)
266	266	State of _______________________
267	267	County of ______________________
268	268	This document was acknowledged before me on ____________ (date) by
269	269	________________________
270	270	(name of principal)
271	271	____________________________
272	272	(signature of notarial officer)
273	273	(Seal, if any, of notary) ______________________________________
274	274	(printed name)
275	275	My commission expires: __________
276	276	IMPORTANT INFORMATION FOR AGENT
277	277	Agent's Duties
278	278	When you accept the authority granted under this power of
279	279	attorney, you establish a "fiduciary" relationship with the
280	280	principal. This is a special legal relationship that imposes on you
281	281	legal duties that continue until you resign or the power of attorney
282	282	is terminated, suspended, or revoked by the principal or by
283	283	operation of law. A fiduciary duty generally includes the duty to:
284	284	(1) act in good faith;
285	285	(2) do nothing beyond the authority granted in this
286	286	power of attorney;
287	287	(3) act loyally for the principal's benefit;
288	288	(4) avoid conflicts that would impair your ability to
289	289	act in the principal's best interest; and
290	290	(5) disclose your identity as an agent when you act for
291	291	the principal by writing or printing the name of the principal and
292	292	signing your own name as "agent" in the following manner:
293	293	(Principal's Name) by (Your Signature) as Agent
294	294	In addition, the Durable Power of Attorney Act (Subtitle P,
295	295	Title 2, Estates Code) requires you to:
296	296	(1) maintain records of each action taken or decision
297	297	made on behalf of the principal;
298	298	(2) maintain all records until delivered to the
299	299	principal, released by the principal, or discharged by a court; and
300	300	(3) if requested by the principal, provide an
301	301	accounting to the principal that, unless otherwise directed by the
302	302	principal or otherwise provided in the Special Instructions, must
303	303	include:
304	304	(A) the property belonging to the principal that
305	305	has come to your knowledge or into your possession;
306	306	(B) each action taken or decision made by you as
307	307	agent;
308	308	(C) a complete account of receipts,
309	309	disbursements, and other actions of you as agent that includes the
310	310	source and nature of each receipt, disbursement, or action, with
311	311	receipts of principal and income shown separately;
312	312	(D) a listing of all property over which you have
313	313	exercised control that includes an adequate description of each
314	314	asset and the asset's current value, if known to you;
315	315	(E) the cash balance on hand and the name and
316	316	location of the depository at which the cash balance is kept;
317	317	(F) each known liability;
318	318	(G) any other information and facts known to you
319	319	as necessary for a full and definite understanding of the exact
320	320	condition of the property belonging to the principal; and
321	321	(H) all documentation regarding the principal's
322	322	property.
323	323	Termination of Agent's Authority
324	324	You must stop acting on behalf of the principal if you learn
325	325	of any event that terminates or suspends this power of attorney or
326	326	your authority under this power of attorney. An event that
327	327	terminates this power of attorney or your authority to act under
328	328	this power of attorney includes:
329	329	(1) the principal's death;
330	330	(2) the principal's revocation of this power of
331	331	attorney or your authority;
332	332	(3) the occurrence of a termination event stated in
333	333	this power of attorney;
334	334	(4) if you are married to the principal, the
335	335	dissolution of your marriage by a court decree of divorce or
336	336	annulment or declaration that your marriage is void, unless
337	337	otherwise provided in this power of attorney;
338	338	(5) the appointment and qualification of a permanent
339	339	guardian of the principal's estate unless a court order provides
340	340	otherwise; or
341	341	(6) if ordered by a court, your removal as agent
342	342	(attorney in fact) under this power of attorney. An event that
343	343	suspends this power of attorney or your authority to act under this
344	344	power of attorney is the appointment and qualification of a
345	345	temporary guardian unless a court order provides otherwise.
346	346	Liability of Agent
347	347	The authority granted to you under this power of attorney is
348	348	specified in the Durable Power of Attorney Act (Subtitle P, Title 2,
349	349	Estates Code). If you violate the Durable Power of Attorney Act or
350	350	act beyond the authority granted, you may be liable for any damages
351	351	caused by the violation or subject to prosecution for
352	352	misapplication of property by a fiduciary under Chapter 32 of the
353	353	Texas Penal Code.
354	354	THE AGENT, BY ACCEPTING OR ACTING UNDER THE APPOINTMENT,
355	355	ASSUMES THE FIDUCIARY AND OTHER LEGAL RESPONSIBILITIES OF AN AGENT.
356	356	SECTION 5. The changes in law made by this Act apply only to
357	357	a durable power of attorney executed on or after the effective date
358	358	of this Act. A durable power of attorney executed before the
359	359	effective date of this Act is governed by the law in effect on the
360	360	date the power of attorney was executed, and that law continues in
361	361	effect for that purpose.
362	362	SECTION 6. This Act takes effect January 1, 2026, but only
363	363	if the constitutional amendment proposed by the 89th Legislature,
364	364	Regular Session, 2025, authorizing the legislature to provide for
365	365	exceptions to the requirement that a home equity loan be closed only
366	366	at the office of the lender, an attorney at law, or a title company
367	367	is approved by the voters. If that proposed constitutional
368	368	amendment is not approved by the voters, this Act has no effect.