President Donald Trump’s March 13, 2020 Declaration of a National Emergency Permits Waiving of Texas Home Equity Seasoning Periods for “50(a)(6) Loans” But Not for “F2 Conversion” Loans.

In Client and Friends Memos by BMG Memorandum

Under Texas law, there is generally a one-year seasoning period for refinancing an existing loan made under Article XVI, Section 50(a)(6) of the Texas Constitution (“Texas Home Equity Loan”) as either a new Texas Home Equity Loan or as a no cash-out rate/term refinance made under Article XVI, Section 50(f)(2) of the Texas Constitution (“F2 Conversion”).

The Texas Constitution provides an “emergency exception” to the one year seasoning requirements- but be careful.  The exception may be difficult to navigate. Please read the Full Memorandum below.

Full Memorandum