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Texas House Committee Hears Home Equity Bill
Monday, April 10, 2017 6:50 AM

The House Investments and Financial Services committee heard HJR 99 by Rep. Tan Parker (R-Flower Mound). Parker said the bill is designed to improve access to home equity loans and make them more affordable.

Like its companion bill, SJR 60 by Sen. Kelly Hancock (R-North Richland Hills), HJR 99 is a constitutional amendment that updates the home equity lending process in Texas, making it easier for borrowers to obtain home equity loans. It repeals the prohibition of agricultural homesteads and allows a seasoned refinance of a home equity loan that is at least one year old into a conventional loan allowing for possible better terms and rates for the borrower.

The bill addresses the problems of the 3 percent cap on fees. It reclassifies third-party expenses such as appraisals, surveys, title policies, or title reports, which are required to make the loan, from the 3 percent cap calculation. With the removal of those third-party fees from the calculation, the 3 percent cap will be reduced to 2 percent to protect consumers from additional expense.

The Texas Credit Union Association has been working with the Texas Bankers Association, Independent Bankers Association, Mortgage Bankers Association, Texas Association of Realtors, and the Farm Bureau on the legislation that is supported by all the groups.

The bill was left pending in committee.

For more information, please contact Jeff Huffman, president, Texas Credit Union Association at 469-385-6488 or jhuffman@txcua.coop.