Texas House Bill HJR75

Texas 2025 - 89th Regular

• Filed: 11/12/24

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 passed, this amendment would allow for legislative discretion in creating alternative closing mechanisms for home equity loans. This could have broad implications for homeowners across Texas, offering them more accessibility to financing options. However, it places the enforcement of compliance into the hands of state legislators, raising questions about how these exceptions will be implemented and monitored, and whether they might lead to potential malpractice or abuse in the lending process.

Summary

HJR75 is a joint resolution proposing a constitutional amendment which aims to authorize the Texas legislature to establish exceptions to the existing rules that stipulate home equity loans must be closed only at specified locations, namely at the office of the lender, an attorney, or a title company. The amendment seeks to provide greater flexibility in the execution of home equity loans, which could potentially benefit homeowners seeking access to equity in their homes.

Contention

The proposed amendment is likely to spark debate regarding homeowner protection and lending regulations. Supporters may contend that this provides necessary flexibility that modern lending practices demand, particularly in a rapidly changing economic environment. Conversely, opponents might raise concerns about the risk of predatory lending practices, arguing that easing restrictions could undermine the protections currently in place for vulnerable borrowers.

Implementation

The resolution stipulates that should this constitutional amendment pass, it will be presented to voters in an election scheduled for November 4, 2025. This provision allows the public to have a direct say in whether to alter the constitutional requirements surrounding home equity loan closures, reflecting the democratic process in making significant changes to regulatory frameworks.