Texas 2025 - 89th Regular

Texas House Bill HB957

Filed

11/12/24

Out of House Committee

Voted on by House

Out of Senate Committee

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

The implications of HB 957 are significant for military families and individuals with disabilities. By allowing for remote notarization and closing procedures, the bill seeks to make the home equity loan process more accessible. This is particularly critical for military personnel who may be stationed far from home or deployed abroad. The adjustments aim to streamline the loan process, reduce legislative barriers, and enhance flexibility, thereby encouraging home ownership for those who might otherwise be unable to partake in traditional loan processes due to geographic or health-related restrictions.

Summary

House Bill 957 aims to amend the Texas Finance Code concerning the requirements for the physical presence of borrowers during the closing of home equity loans. Specifically, the bill proposes that certain borrowers—namely active-duty military personnel, their spouses, civilians employed by the military in foreign countries, or borrowers with disabilities—should not be required to be physically present at the closing. Instead, they will have options for closing remotely through secure online notarization or via an agent empowered by a durable power of attorney. This change responds to the unique circumstances of certain demographics who face challenges in attending loan closures in person.

Contention

However, the bill also raises concerns regarding the potential risks of executing such legal and financial transactions remotely, particularly in terms of ensuring the authenticity and security of signatures. Critics may argue that allowing remote closings without stringent verification could heighten the risk of fraud or exploitation. Additionally, there may be apprehensions about the adequacy of safeguards surrounding the use of power of attorney in financial transactions, particularly in preserving the borrower's rights and best interests in such arrangements. As this bill moves through the legislative process, these points of contention are likely to be highlighted and debated among lawmakers and stakeholders.

Texas Constitutional Statutes Affected

Finance Code

Chapter 343. Home Loans
- Section: New Section

Estates Code

Chapter 751. General Provisions Regarding Durable Powers Of Attorney
- Section: New Section

Chapter 752. Statutory Durable Power Of Attorney
- Section: New Section

Companion Bills

TX HJR75

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 HB264

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

TX SB1779

Relating to the adoption of the Uniform Electronic Estate Planning Documents Act.

TX HJR124

Proposing a constitutional amendment to remove 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

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 HB4869

Relating to the confidentiality of certain home address information in certain documents.

TX HJR29

Proposing a constitutional amendment providing that a residence homestead is not subject to seizure or sale for delinquent ad valorem taxes.

TX HB2589

Relating to the form of a medical power of attorney.

TX HB2544

Relating to the physician assistant licensure compact; authorizing a fee.

TX HB4989

Relating to the presumption of validity for an advance directive and permissible forms of a medical power of attorney.

TX HB127

Relating to measures to address public safety threats in this state presented by transnational criminal activity, including by establishing a Texas Homeland Security Division, and to compensate persons affected by those threats.