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Texas Senate Committee Hears Home Equity Bill
Wednesday, April 5, 2017 6:45 AM

The Senate Business and Commerce Committee held a hearing Tuesday on a resolution that would be the first major change to home equity laws since 2003.

SJR 60 by Sen. Kelly Hancock (R-North Richland Hills) 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, realtors, and the Farm Bureau on legislation that can be supported by all the groups.

SJR 60 was left pending.

For more information, please contact Texas Credit Union Association President Jeff Huffman at 469-385-6488 or