Texas adopted rules amending provisions with respect to home equity loans. The adopted rules:
- Clarify “state of emergency” for purposes of permitting a home equity loan to be closed within 1 year of a previous home equity loan on the same property;
- State that closing may occur in any area located at the permanent physical address of the lender, attorney, or title company (e.g., indoor office, paring lot, etc.);
- Permit copies of documents to be provided electronically;
- Specify that the “acknowledgment of fair market value” may be signed at or before closing; and
- Clarify that the restrictions regarding repayment schedule do not prohibit the modification of a home equity loan (as long as the modification does not satisfy and replace the original home equity loan and does not create a new extension of credit).
The adopted rules become effective November 26, 2020.
See Texas Secretary of State website for the full text of the Regulations:
* Note that both links need to be viewed in conjunction with each other to get the full text of the regulations.
