Texas 2025 - 89th Regular

Texas Senate Bill SJR79 Compare Versions

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1	1	By: Menéndez S.J.R. No. 79
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6	6	SENATE JOINT RESOLUTION
7	7	proposing a constitutional amendment increasing the amount of debt
8	8	that may be secured by a homestead for purposes of refinancing a
9	9	loan including those with an extension of credit guaranteed by the
10	10	United States Department of Veterans Affairs.
11	11	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Sections 50(a), (f), and (g), Article XVI, Texas
13	13	Constitution, are amended to read as follows:
14	14	(a) The homestead of a family, or of a single adult person,
15	15	shall be, and is hereby protected from forced sale, for the payment
16	16	of all debts except for:
17	17	(1) the purchase money thereof, or a part of such
18	18	purchase money;
19	19	(2) the taxes due thereon;
20	20	(3) an owelty of partition imposed against the
21	21	entirety of the property by a court order or by a written agreement
22	22	of the parties to the partition, including a debt of one spouse in
23	23	favor of the other spouse resulting from a division or an award of a
24	24	family homestead in a divorce proceeding;
25	25	(4) the refinance of a lien against a homestead,
26	26	including a federal tax lien resulting from the tax debt of both
27	27	spouses, if the homestead is a family homestead, or from the tax
28	28	debt of the owner;
29	29	(5) work and material used in constructing new
30	30	improvements thereon, if contracted for in writing, or work and
31	31	material used to repair or renovate existing improvements thereon
32	32	if:
33	33	(A) the work and material are contracted for in
34	34	writing, with the consent of both spouses, in the case of a family
35	35	homestead, given in the same manner as is required in making a sale
36	36	and conveyance of the homestead;
37	37	(B) the contract for the work and material is not
38	38	executed by the owner or the owner's spouse before the fifth day
39	39	after the owner makes written application for any extension of
40	40	credit for the work and material, unless the work and material are
41	41	necessary to complete immediate repairs to conditions on the
42	42	homestead property that materially affect the health or safety of
43	43	the owner or person residing in the homestead and the owner of the
44	44	homestead acknowledges such in writing;
45	45	(C) the contract for the work and material
46	46	expressly provides that the owner may rescind the contract without
47	47	penalty or charge within three days after the execution of the
48	48	contract by all parties, unless the work and material are necessary
49	49	to complete immediate repairs to conditions on the homestead
50	50	property that materially affect the health or safety of the owner or
51	51	person residing in the homestead and the owner of the homestead
52	52	acknowledges such in writing; and
53	53	(D) the contract for the work and material is
54	54	executed by the owner and the owner's spouse only at the office of a
55	55	third-party lender making an extension of credit for the work and
56	56	material, an attorney at law, or a title company;
57	57	(6) an extension of credit that:
58	58	(A) is secured by a voluntary lien on the
59	59	homestead created under a written agreement with the consent of
60	60	each owner and each owner's spouse;
61	61	(B) is of a principal amount that when added to
62	62	the aggregate total of the outstanding principal balances of all
63	63	other indebtedness secured by valid encumbrances of record against
64	64	the homestead does not exceed:
65	65	(i) except as provided by Subparagraph
66	66	(ii), 80 percent of the fair market value of the homestead on the
67	67	date the extension of credit is made; or
68	68	(ii) the fair market value of the homestead
69	69	on the date the extension of credit is made, if the extension of
70	70	credit is:
71	71	(a) used to refinance a lien against
72	72	the homestead; or
73	73	(b) guaranteed by the United States
74	74	Department of Veterans Affairs or a successor agency;
75	75	(C) is without recourse for personal liability
76	76	against each owner and the spouse of each owner, unless the owner or
77	77	spouse obtained the extension of credit by actual fraud;
78	78	(D) is secured by a lien that may be foreclosed
79	79	upon only by a court order;
80	80	(E) does not require the owner or the owner's
81	81	spouse to pay, in addition to any interest or any bona fide discount
82	82	points used to buy down the interest rate, any fees to any person
83	83	that are necessary to originate, evaluate, maintain, record,
84	84	insure, or service the extension of credit that exceed, in the
85	85	aggregate, two percent of the original principal amount of the
86	86	extension of credit, excluding fees for:
87	87	(i) an appraisal performed by a third party
88	88	appraiser;
89	89	(ii) a property survey performed by a state
90	90	registered or licensed surveyor;
91	91	(iii) a state base premium for a mortgagee
92	92	policy of title insurance with endorsements established in
93	93	accordance with state law; or
94	94	(iv) a title examination report if its cost
95	95	is less than the state base premium for a mortgagee policy of title
96	96	insurance without endorsements established in accordance with
97	97	state law;
98	98	(F) is not a form of open-end account that may be
99	99	debited from time to time or under which credit may be extended from
100	100	time to time unless the open-end account is a home equity line of
101	101	credit;
102	102	(G) is payable in advance without penalty or
103	103	other charge;
104	104	(H) is not secured by any additional real or
105	105	personal property other than the homestead;
106	106	(I) (repealed);
107	107	(J) may not be accelerated because of a decrease
108	108	in the market value of the homestead or because of the owner's
109	109	default under other indebtedness not secured by a prior valid
110	110	encumbrance against the homestead;
111	111	(K) is the only debt secured by the homestead at
112	112	the time the extension of credit is made unless the other debt was
113	113	made for a purpose described by Subsections (a)(1)-(a)(5) or
114	114	Subsection (a)(8) of this section;
115	115	(L) is scheduled to be repaid:
116	116	(i) in substantially equal successive
117	117	periodic installments, not more often than every 14 days and not
118	118	less often than monthly, beginning no later than two months from the
119	119	date the extension of credit is made, each of which equals or
120	120	exceeds the amount of accrued interest as of the date of the
121	121	scheduled installment; or
122	122	(ii) if the extension of credit is a home
123	123	equity line of credit, in periodic payments described under
124	124	Subsection (t)(8) of this section;
125	125	(M) is closed not before:
126	126	(i) the 12th day after the later of the date
127	127	that the owner of the homestead submits a loan application to the
128	128	lender for the extension of credit or the date that the lender
129	129	provides the owner a copy of the notice prescribed by Subsection (g)
130	130	of this section;
131	131	(ii) one business day after the date that
132	132	the owner of the homestead receives a copy of the loan application
133	133	if not previously provided and a final itemized disclosure of the
134	134	actual fees, points, interest, costs, and charges that will be
135	135	charged at closing. If a bona fide emergency or another good cause
136	136	exists and the lender obtains the written consent of the owner, the
137	137	lender may provide the documentation to the owner or the lender may
138	138	modify previously provided documentation on the date of closing;
139	139	and
140	140	(iii) the first anniversary of the closing
141	141	date of any other extension of credit described by Subsection
142	142	(a)(6) of this section secured by the same homestead property,
143	143	except a refinance described by Paragraph (Q)(x)(f) of this
144	144	subdivision, unless the owner on oath requests an earlier closing
145	145	due to a state of emergency that:
146	146	(a) has been declared by the president
147	147	of the United States or the governor as provided by law; and
148	148	(b) applies to the area where the
149	149	homestead is located;
150	150	(N) is closed only at the office of the lender, an
151	151	attorney at law, or a title company, except as otherwise provided by
152	152	statute;
153	153	(O) permits a lender to contract for and receive
154	154	any fixed or variable rate of interest authorized under statute;
155	155	(P) is made by one of the following that has not
156	156	been found by a federal regulatory agency to have engaged in the
157	157	practice of refusing to make loans because the applicants for the
158	158	loans reside or the property proposed to secure the loans is located
159	159	in a certain area:
160	160	(i) a bank, savings and loan association,
161	161	savings bank, or credit union doing business under the laws of this
162	162	state or the United States, including a subsidiary of a bank,
163	163	savings and loan association, savings bank, or credit union
164	164	described by this subparagraph;
165	165	(ii) a federally chartered lending
166	166	instrumentality or a person approved as a mortgagee by the United
167	167	States government to make federally insured loans;
168	168	(iii) a person licensed to make regulated
169	169	loans, as provided by statute of this state;
170	170	(iv) a person who sold the homestead
171	171	property to the current owner and who provided all or part of the
172	172	financing for the purchase;
173	173	(v) a person who is related to the homestead
174	174	property owner within the second degree of affinity or
175	175	consanguinity; or
176	176	(vi) a person regulated by this state as a
177	177	mortgage banker or mortgage company; and
178	178	(Q) is made on the condition that:
179	179	(i) the owner of the homestead is not
180	180	required to apply the proceeds of the extension of credit to repay
181	181	another debt except debt secured by the homestead or debt to another
182	182	lender;
183	183	(ii) the owner of the homestead not assign
184	184	wages as security for the extension of credit;
185	185	(iii) the owner of the homestead not sign
186	186	any instrument in which blanks relating to substantive terms of
187	187	agreement are left to be filled in;
188	188	(iv) the owner of the homestead not sign a
189	189	confession of judgment or power of attorney to the lender or to a
190	190	third person to confess judgment or to appear for the owner in a
191	191	judicial proceeding;
192	192	(v) at the time the extension of credit is
193	193	made, the owner of the homestead shall receive a copy of the final
194	194	loan application and all executed documents signed by the owner at
195	195	closing related to the extension of credit;
196	196	(vi) the security instruments securing the
197	197	extension of credit contain a disclosure that the extension of
198	198	credit is the type of credit defined by Subsection (a)(6) of this
199	199	section;
200	200	(vii) within a reasonable time after
201	201	termination and full payment of the extension of credit, the lender
202	202	cancel and return the promissory note to the owner of the homestead
203	203	and give the owner, in recordable form, a release of the lien
204	204	securing the extension of credit or a copy of an endorsement and
205	205	assignment of the lien to a lender that is refinancing the extension
206	206	of credit;
207	207	(viii) the owner of the homestead and any
208	208	spouse of the owner may, within three days after the extension of
209	209	credit is made, rescind the extension of credit without penalty or
210	210	charge;
211	211	(ix) the owner of the homestead and the
212	212	lender sign a written acknowledgment as to the fair market value of
213	213	the homestead property on the date the extension of credit is made;
214	214	(x) except as provided by Subparagraph (xi)
215	215	of this paragraph, the lender or any holder of the note for the
216	216	extension of credit shall forfeit all principal and interest of the
217	217	extension of credit if the lender or holder fails to comply with the
218	218	lender's or holder's obligations under the extension of credit and
219	219	fails to correct the failure to comply not later than the 60th day
220	220	after the date the lender or holder is notified by the borrower of
221	221	the lender's failure to comply by:
222	222	(a) paying to the owner an amount
223	223	equal to any overcharge paid by the owner under or related to the
224	224	extension of credit if the owner has paid an amount that exceeds an
225	225	amount stated in the applicable Paragraph (E), (G), or (O) of this
226	226	subdivision;
227	227	(b) sending the owner a written
228	228	acknowledgement that the lien is valid only in the amount that the
229	229	extension of credit does not exceed the percentage described by
230	230	Paragraph (B) of this subdivision, if applicable, or is not secured
231	231	by property described under Paragraph (H) of this subdivision, if
232	232	applicable;
233	233	(c) sending the owner a written notice
234	234	modifying any other amount, percentage, term, or other provision
235	235	prohibited by this section to a permitted amount, percentage, term,
236	236	or other provision and adjusting the account of the borrower to
237	237	ensure that the borrower is not required to pay more than an amount
238	238	permitted by this section and is not subject to any other term or
239	239	provision prohibited by this section;
240	240	(d) delivering the required documents
241	241	to the borrower if the lender fails to comply with Subparagraph (v)
242	242	of this paragraph or obtaining the appropriate signatures if the
243	243	lender fails to comply with Subparagraph (ix) of this paragraph;
244	244	(e) sending the owner a written
245	245	acknowledgement, if the failure to comply is prohibited by
246	246	Paragraph (K) of this subdivision, that the accrual of interest and
247	247	all of the owner's obligations under the extension of credit are
248	248	abated while any prior lien prohibited under Paragraph (K) remains
249	249	secured by the homestead; or
250	250	(f) if the failure to comply cannot be
251	251	cured under Subparagraphs (x)(a)-(e) of this paragraph, curing the
252	252	failure to comply by a refund or credit to the owner of $1,000 and
253	253	offering the owner the right to refinance the extension of credit
254	254	with the lender or holder for the remaining term of the loan at no
255	255	cost to the owner on the same terms, including interest, as the
256	256	original extension of credit with any modifications necessary to
257	257	comply with this section or on terms on which the owner and the
258	258	lender or holder otherwise agree that comply with this section; and
259	259	(xi) the lender or any holder of the note
260	260	for the extension of credit shall forfeit all principal and
261	261	interest of the extension of credit if the extension of credit is
262	262	made by a person other than a person described under Paragraph (P)
263	263	of this subdivision or if the lien was not created under a written
264	264	agreement with the consent of each owner and each owner's spouse,
265	265	unless each owner and each owner's spouse who did not initially
266	266	consent subsequently consents;
267	267	(7) a reverse mortgage; or
268	268	(8) the conversion and refinance of a personal
269	269	property lien secured by a manufactured home to a lien on real
270	270	property, including the refinance of the purchase price of the
271	271	manufactured home, the cost of installing the manufactured home on
272	272	the real property, and the refinance of the purchase price of the
273	273	real property.
274	274	(f) A refinance of debt secured by the homestead, any
275	275	portion of which is an extension of credit described by Subsection
276	276	(a)(6) of this section, may not be secured by a valid lien against
277	277	the homestead unless either:
278	278	(1) the refinance of the debt is an extension of credit
279	279	described by Subsection (a)(6) or (a)(7) of this section; or
280	280	(2) all of the following conditions are met:
281	281	(A) the refinance is not closed before the first
282	282	anniversary of the date the extension of credit was closed;
283	283	(B) the refinanced extension of credit does not
284	284	include the advance of any additional funds other than:
285	285	(i) funds advanced to refinance a debt
286	286	described by Subsections (a)(1) through (a)(7) of this section; or
287	287	(ii) actual costs and reserves required by
288	288	the lender to refinance the debt;
289	289	(C) the refinance of the extension of credit is
290	290	of a principal amount that when added to the aggregate total of the
291	291	outstanding principal balances of all other indebtedness secured by
292	292	valid encumbrances of record against the homestead does not exceed:
293	293	(i) except as provided by Subparagraph
294	294	(ii), 80 percent of the fair market value of the homestead on the
295	295	date the refinance of the extension of credit is made; or
296	296	(ii) the fair market value of the homestead
297	297	on the date of the refinance of the extension of credit if the
298	298	extension of credit is:
299	299	(a) used to refinance a lien against
300	300	the homestead; and
301	301	(b) guaranteed by the United States
302	302	Department of Veterans Affairs or a successor agency; and
303	303	(D) the lender provides the owner the following
304	304	written notice on a separate document not later than the third
305	305	business day after the date the owner submits the loan application
306	306	to the lender and at least 12 days before the date the refinance of
307	307	the extension of credit is closed:
308	308	"YOUR EXISTING LOAN THAT YOU DESIRE TO REFINANCE IS A HOME
309	309	EQUITY LOAN. YOU MAY HAVE THE OPTION TO REFINANCE YOUR HOME EQUITY
310	310	LOAN AS EITHER A HOME EQUITY LOAN OR AS A NON-HOME EQUITY LOAN, IF
311	311	OFFERED BY YOUR LENDER.
312	312	"HOME EQUITY LOANS HAVE IMPORTANT CONSUMER PROTECTIONS. A
313	313	LENDER MAY ONLY FORECLOSE A HOME EQUITY LOAN BASED ON A COURT
314	314	ORDER. A HOME EQUITY LOAN MUST BE WITHOUT RECOURSE FOR PERSONAL
315	315	LIABILITY AGAINST YOU AND YOUR SPOUSE.
316	316	"IF YOU HAVE APPLIED TO REFINANCE YOUR EXISTING HOME EQUITY
317	317	LOAN AS A NON-HOME EQUITY LOAN, YOU WILL LOSE CERTAIN CONSUMER
318	318	PROTECTIONS. A NON-HOME EQUITY REFINANCED LOAN:
319	319	"(1) WILL PERMIT THE LENDER TO FORECLOSE WITHOUT A
320	320	COURT ORDER;
321	321	"(2) WILL BE WITH RECOURSE FOR PERSONAL LIABILITY
322	322	AGAINST YOU AND YOUR SPOUSE; AND
323	323	"(3) MAY ALSO CONTAIN OTHER TERMS OR CONDITIONS THAT
324	324	MAY NOT BE PERMITTED IN A TRADITIONAL HOME EQUITY LOAN.
325	325	"BEFORE YOU REFINANCE YOUR EXISTING HOME EQUITY LOAN TO MAKE
326	326	IT A NON-HOME EQUITY LOAN, YOU SHOULD MAKE SURE YOU UNDERSTAND THAT
327	327	YOU ARE WAIVING IMPORTANT PROTECTIONS THAT HOME EQUITY LOANS
328	328	PROVIDE UNDER THE LAW AND SHOULD CONSIDER CONSULTING WITH AN
329	329	ATTORNEY OF YOUR CHOOSING REGARDING THESE PROTECTIONS.
330	330	"YOU MAY WISH TO ASK YOUR LENDER TO REFINANCE YOUR LOAN AS A
331	331	HOME EQUITY LOAN. HOWEVER, A HOME EQUITY LOAN MAY HAVE A HIGHER
332	332	INTEREST RATE AND CLOSING COSTS THAN A NON-HOME EQUITY LOAN."
333	333	(g) An extension of credit described by Subsection (a)(6) of
334	334	this section may be secured by a valid lien against homestead
335	335	property if the extension of credit is not closed before the 12th
336	336	day after the lender provides the owner with the following written
337	337	notice on a separate instrument:
338	338	"NOTICE CONCERNING EXTENSIONS OF CREDIT DEFINED BY SECTION
339	339	50(a)(6), ARTICLE XVI, TEXAS CONSTITUTION:
340	340	"SECTION 50(a)(6), ARTICLE XVI, OF THE TEXAS CONSTITUTION
341	341	ALLOWS CERTAIN LOANS TO BE SECURED AGAINST THE EQUITY IN YOUR
342	342	HOME. SUCH LOANS ARE COMMONLY KNOWN AS EQUITY LOANS. IF YOU DO
343	343	NOT REPAY THE LOAN OR IF YOU FAIL TO MEET THE TERMS OF THE LOAN, THE
344	344	LENDER MAY FORECLOSE AND SELL YOUR HOME. THE CONSTITUTION PROVIDES
345	345	THAT:
346	346	"(A) THE LOAN MUST BE VOLUNTARILY CREATED WITH THE CONSENT OF
347	347	EACH OWNER OF YOUR HOME AND EACH OWNER'S SPOUSE;
348	348	"(B) THE PRINCIPAL LOAN AMOUNT AT THE TIME THE LOAN IS MADE
349	349	MUST NOT EXCEED AN AMOUNT THAT, WHEN ADDED TO THE PRINCIPAL BALANCES
350	350	OF ALL OTHER LIENS AGAINST YOUR HOME, IS MORE THAN 80 PERCENT OF THE
351	351	FAIR MARKET VALUE OF YOUR HOME OR MORE THAN THE FAIR MARKET VALUE OF
352	352	YOUR HOME FOR CERTAIN LOANS GUARANTEED BY THE UNITED STATES
353	353	DEPARTMENT OF VETERANS AFFAIRS;
354	354	"(C) THE LOAN MUST BE WITHOUT RECOURSE FOR PERSONAL LIABILITY
355	355	AGAINST YOU AND YOUR SPOUSE UNLESS YOU OR YOUR SPOUSE OBTAINED THIS
356	356	EXTENSION OF CREDIT BY ACTUAL FRAUD;
357	357	"(D) THE LIEN SECURING THE LOAN MAY BE FORECLOSED UPON ONLY
358	358	WITH A COURT ORDER;
359	359	"(E) FEES AND CHARGES TO MAKE THE LOAN MAY NOT EXCEED 2
360	360	PERCENT OF THE LOAN AMOUNT, EXCEPT FOR A FEE OR CHARGE FOR AN
361	361	APPRAISAL PERFORMED BY A THIRD PARTY APPRAISER, A PROPERTY SURVEY
362	362	PERFORMED BY A STATE REGISTERED OR LICENSED SURVEYOR, A STATE BASE
363	363	PREMIUM FOR A MORTGAGEE POLICY OF TITLE INSURANCE WITH
364	364	ENDORSEMENTS, OR A TITLE EXAMINATION REPORT;
365	365	"(F) THE LOAN MAY NOT BE AN OPEN-END ACCOUNT THAT MAY BE
366	366	DEBITED FROM TIME TO TIME OR UNDER WHICH CREDIT MAY BE EXTENDED FROM
367	367	TIME TO TIME UNLESS IT IS A HOME EQUITY LINE OF CREDIT;
368	368	"(G) YOU MAY PREPAY THE LOAN WITHOUT PENALTY OR CHARGE;
369	369	"(H) NO ADDITIONAL COLLATERAL MAY BE SECURITY FOR THE LOAN;
370	370	"(I) (repealed);
371	371	"(J) YOU ARE NOT REQUIRED TO REPAY THE LOAN EARLIER THAN
372	372	AGREED SOLELY BECAUSE THE FAIR MARKET VALUE OF YOUR HOME DECREASES
373	373	OR BECAUSE YOU DEFAULT ON ANOTHER LOAN THAT IS NOT SECURED BY YOUR
374	374	HOME;
375	375	"(K) ONLY ONE LOAN DESCRIBED BY SECTION 50(a)(6), ARTICLE
376	376	XVI, OF THE TEXAS CONSTITUTION MAY BE SECURED WITH YOUR HOME AT ANY
377	377	GIVEN TIME;
378	378	"(L) THE LOAN MUST BE SCHEDULED TO BE REPAID IN PAYMENTS THAT
379	379	EQUAL OR EXCEED THE AMOUNT OF ACCRUED INTEREST FOR EACH PAYMENT
380	380	PERIOD;
381	381	"(M) THE LOAN MAY NOT CLOSE BEFORE 12 DAYS AFTER YOU SUBMIT A
382	382	LOAN APPLICATION TO THE LENDER OR BEFORE 12 DAYS AFTER YOU RECEIVE
383	383	THIS NOTICE, WHICHEVER DATE IS LATER; AND MAY NOT WITHOUT YOUR
384	384	CONSENT CLOSE BEFORE ONE BUSINESS DAY AFTER THE DATE ON WHICH YOU
385	385	RECEIVE A COPY OF YOUR LOAN APPLICATION IF NOT PREVIOUSLY PROVIDED
386	386	AND A FINAL ITEMIZED DISCLOSURE OF THE ACTUAL FEES, POINTS,
387	387	INTEREST, COSTS, AND CHARGES THAT WILL BE CHARGED AT CLOSING; AND IF
388	388	YOUR HOME WAS SECURITY FOR THE SAME TYPE OF LOAN WITHIN THE PAST
389	389	YEAR, A NEW LOAN SECURED BY THE SAME PROPERTY MAY NOT CLOSE BEFORE
390	390	ONE YEAR HAS PASSED FROM THE CLOSING DATE OF THE OTHER LOAN, UNLESS
391	391	ON OATH YOU REQUEST AN EARLIER CLOSING DUE TO A DECLARED STATE OF
392	392	EMERGENCY;
393	393	"(N) THE LOAN MAY CLOSE ONLY AT THE OFFICE OF THE LENDER,
394	394	TITLE COMPANY, OR AN ATTORNEY AT LAW;
395	395	"(O) THE LENDER MAY CHARGE ANY FIXED OR VARIABLE RATE OF
396	396	INTEREST AUTHORIZED BY STATUTE;
397	397	"(P) ONLY A LAWFULLY AUTHORIZED LENDER MAY MAKE LOANS
398	398	DESCRIBED BY SECTION 50(a)(6), ARTICLE XVI, OF THE TEXAS
399	399	CONSTITUTION;
400	400	"(Q) LOANS DESCRIBED BY SECTION 50(a)(6), ARTICLE XVI, OF THE
401	401	TEXAS CONSTITUTION MUST:
402	402	"(1) NOT REQUIRE YOU TO APPLY THE PROCEEDS TO ANOTHER DEBT
403	403	EXCEPT A DEBT THAT IS SECURED BY YOUR HOME OR OWED TO ANOTHER
404	404	LENDER;
405	405	"(2) NOT REQUIRE THAT YOU ASSIGN WAGES AS SECURITY;
406	406	"(3) NOT REQUIRE THAT YOU EXECUTE INSTRUMENTS WHICH HAVE
407	407	BLANKS FOR SUBSTANTIVE TERMS OF AGREEMENT LEFT TO BE FILLED IN;
408	408	"(4) NOT REQUIRE THAT YOU SIGN A CONFESSION OF JUDGMENT OR
409	409	POWER OF ATTORNEY TO ANOTHER PERSON TO CONFESS JUDGMENT OR APPEAR IN
410	410	A LEGAL PROCEEDING ON YOUR BEHALF;
411	411	"(5) PROVIDE THAT YOU RECEIVE A COPY OF YOUR FINAL LOAN
412	412	APPLICATION AND ALL EXECUTED DOCUMENTS YOU SIGN AT CLOSING;
413	413	"(6) PROVIDE THAT THE SECURITY INSTRUMENTS CONTAIN A
414	414	DISCLOSURE THAT THIS LOAN IS A LOAN DEFINED BY SECTION 50(a)(6),
415	415	ARTICLE XVI, OF THE TEXAS CONSTITUTION;
416	416	"(7) PROVIDE THAT WHEN THE LOAN IS PAID IN FULL, THE LENDER
417	417	WILL SIGN AND GIVE YOU A RELEASE OF LIEN OR AN ASSIGNMENT OF THE
418	418	LIEN, WHICHEVER IS APPROPRIATE;
419	419	"(8) PROVIDE THAT YOU MAY, WITHIN 3 DAYS AFTER CLOSING,
420	420	RESCIND THE LOAN WITHOUT PENALTY OR CHARGE;
421	421	"(9) PROVIDE THAT YOU AND THE LENDER ACKNOWLEDGE THE FAIR
422	422	MARKET VALUE OF YOUR HOME ON THE DATE THE LOAN CLOSES; AND
423	423	"(10) PROVIDE THAT THE LENDER WILL FORFEIT ALL PRINCIPAL AND
424	424	INTEREST IF THE LENDER FAILS TO COMPLY WITH THE LENDER'S
425	425	OBLIGATIONS UNLESS THE LENDER CURES THE FAILURE TO COMPLY AS
426	426	PROVIDED BY SECTION 50(a)(6)(Q)(x), ARTICLE XVI, OF THE TEXAS
427	427	CONSTITUTION; AND
428	428	"(R) IF THE LOAN IS A HOME EQUITY LINE OF CREDIT:
429	429	"(1) YOU MAY REQUEST ADVANCES, REPAY MONEY, AND REBORROW
430	430	MONEY UNDER THE LINE OF CREDIT;
431	431	"(2) EACH ADVANCE UNDER THE LINE OF CREDIT MUST BE IN AN
432	432	AMOUNT OF AT LEAST $4,000;
433	433	"(3) YOU MAY NOT USE A CREDIT CARD, DEBIT CARD, OR SIMILAR
434	434	DEVICE, OR PREPRINTED CHECK THAT YOU DID NOT SOLICIT, TO OBTAIN
435	435	ADVANCES UNDER THE LINE OF CREDIT;
436	436	"(4) ANY FEES THE LENDER CHARGES MAY BE CHARGED AND COLLECTED
437	437	ONLY AT THE TIME THE LINE OF CREDIT IS ESTABLISHED AND THE LENDER
438	438	MAY NOT CHARGE A FEE IN CONNECTION WITH ANY ADVANCE;
439	439	"(5) THE MAXIMUM PRINCIPAL AMOUNT THAT MAY BE EXTENDED, WHEN
440	440	ADDED TO ALL OTHER DEBTS SECURED BY YOUR HOME, MAY NOT EXCEED 80
441	441	PERCENT OF THE FAIR MARKET VALUE OF YOUR HOME ON THE DATE THE LINE OF
442	442	CREDIT IS ESTABLISHED OR THE FAIR MARKET VALUE OF YOUR HOME ON THE
443	443	DATE THE LINE OF CREDIT IS ESTABLISHED FOR CERTAIN LOANS GUARANTEED
444	444	BY THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS;
445	445	"(6) IF THE PRINCIPAL BALANCE UNDER THE LINE OF CREDIT AT ANY
446	446	TIME EXCEEDS 80 PERCENT OF THE FAIR MARKET VALUE OF YOUR HOME OR
447	447	MORE THAN THE FAIR MARKET VALUE OF YOUR HOME FOR CERTAIN LOANS
448	448	GUARANTEED BY THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS, AS
449	449	DETERMINED ON THE DATE THE LINE OF CREDIT IS ESTABLISHED, YOU MAY
450	450	NOT CONTINUE TO REQUEST ADVANCES UNDER THE LINE OF CREDIT UNTIL THE
451	451	BALANCE IS LESS THAN THE APPLICABLE PERCENTAGE [80 PERCENT OF THE
452	452	FAIR MARKET VALUE]; AND
453	453	"(7) THE LENDER MAY NOT UNILATERALLY AMEND THE TERMS OF THE
454	454	LINE OF CREDIT.
455	455	"THIS NOTICE IS ONLY A SUMMARY OF YOUR RIGHTS UNDER THE TEXAS
456	456	CONSTITUTION. YOUR RIGHTS ARE GOVERNED BY SECTION 50, ARTICLE XVI,
457	457	OF THE TEXAS CONSTITUTION, AND NOT BY THIS NOTICE."
458	458	If the discussions with the borrower are conducted primarily
459	459	in a language other than English, the lender shall, before closing,
460	460	provide an additional copy of the notice translated into the
461	461	written language in which the discussions were conducted.
462	462	SECTION 2. This proposed constitutional amendment shall be
463	463	submitted to the voters at an election to be held November 4, 2025.
464	464	The ballot shall be printed to permit voting for or against the
465	465	proposition: "The constitutional amendment increasing, from 80
466	466	percent to an amount equal to the fair market value of the
467	467	homestead, the amount of debt that may be secured by a homestead for
468	468	purposes of refinancing a loan including those with an extension of
469	469	credit guaranteed by the United States Department of Veterans
470	470	Affairs."