Texas adopted rules relating to home equity lending in light of recent amendments to the Texas Constitution. The adopted rules: update references to the fees cap (reduced from 3% to 2% per constitutional amendment); clarify provisions with respect to the fees that may be excluded from the 2% fees cap; clarify requirements with respect to the refinancing of a home equity loan as a non-home equity loan; and remove references to the 50% limitation on additional debits or advances for a HELOC (HELOCs are now subject to the 80% limitation). The adopted rules become effective March 29, 2018.
See Texas Secretary of State website for the full text of the Regulations:
http://www.sos.state.tx.us/texreg/pdf/backview/1124/1124prop.pdf
http://www.sos.state.tx.us/texreg/pdf/backview/0323/0323adop.pdf
*Note that both links need to be viewed in conjunction with each other to get the full text of the regulations.
