Available for download is the Texas Home Equity English 12 Day Notice
The Finance Commission of Texas and the Texas Credit Union Commission (“Commissions”) jointly propose amendments to Interpretations 7 TAC §§ 153.22, 153.51, and 153.84 relating to interpretations of Sections 50(a)(6), (g), and (t)(3), Article XVI, Texas Constitution, regarding home equity lending on Texas homestead. These proposed amendments are published for comment in the March 14, 2008 issue of the Texas Register (Vol. 33, No. 11).
On January 9, 2008, the Board of Governors of the Federal Reserve System (“Board”) proposed significant amendments to Regulation Z, which are discussed in this memorandum. We believe these proposed amendments will have a dramatic impact on the way mortgage lending is conducted if the Board adopts them, as proposed.
This memorandum is a follow-up to our November 1, 2007, memorandum on the same subject. Constitutional Amendment HJR 72, which amends the home equity provisions in Article 16, Section 50 of the Texas Constitution, approved by the voters on November 6, 2007, will take effect on December 4, 2007 (the date of the official vote canvass by the governor confirming statewide majority approval).
In order to implement the recent legislative changes to the Mortgage Broker License Act (Chapter 156, Finance Code, herein the “Act”) made by House Bills 1716 and 2783 (see our Legislative Update dated August 6, 2007), the Finance Commission of Texas (“Finance Commission”) published in the November 2, 2007 issue of the Texas Register amendments to the following mortgage broker rules: 7 TAC §§80.1 – 80.7 (Licensing), §§80.12 – 80.14 (Administration and Records), §§80.20 and 80.21 (Inspections and Investigations), and §80.23 (Annual Reports). These amended rules become effective November 11, 2007.
Over the last several years we have periodically updated our clients on the status of the Federal Communications Commission’s rules on unsolicited facsimile advertisements (see memos dated August 18, 2003 (updated October 18, 2004 and June 28, 2005) and July 5, 2005). On April 5, 2006, in its Report and Order and Third Order on Reconsideration (“Order”), the Commission adopted its final rules regarding unsolicited facsimile advertisements. These rules became effective August 1, 2006, and implement the Telephone Protection Act of 1991 (Public Law No. 102-243) and the Junk Fax Prevention Act of 2005 (Public Law No. 109-21), codified at 47 U.S.C. §227.
The Texas Finance Commission (“Commission”) published in the August 25, 2006 issue of the Texas Register (Vol. 31, No. 34) an extensive relocation and reorganization of administrative rules and model forms for secured and unsecured loans subject to Chapter 342 of the Texas Finance Code.
The Finance Commission of Texas and the Texas Credit Union Commission (“Commissions”) have jointly revised the following home equity Interpretations of §50(a)(6), Article XVI, Texas Constitution: §153.13 (Preclosing Disclosures), §153.18 (Limitation on Application of Proceeds), and §153.20 (No Blanks in Any Instrument). These revised Interpretations are published in the June 23, 2006 issue of the Texas Register (Vol. 31, No. 25) and become effective June 29, 2006.
This legislative update covers constitutional amendments SJR 7 and SJR 21, submitted for voter approval on November 8, 2005, and Sections 2.09, 2.10 and 2.11 of HB 955, and revises our November 4, 2005 legislative update on these issues. SJR 7 was approved and becomes effective when the secretary of state canvasses [authenticates] the votes for that amendment. SJR 21 was not approved and neither SJR 21 nor its implementing legislation in Sections 2.09, 2.10 and 2.11 of HB 955 will become law. This update summaries SJR 7 and SJR 21 with redactions from the Bill Analysis. This update also quotes the full text of SJR 7 with its additions underlined and its deletions in brackets with strikethroughs.
This memorandum is the final revisions to our previous memorandums on this issue dated August 18, and September 2, 2005. As discussed in those prior memorandums, House Bill 1547, 79th Regular Session of the Texas Legislature, 2005, amends the plain language provisions of Section 341.502 of the Texas Finance Code to provide for the following Spanish language disclosures.