HBA-JLV H.B. 3239 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3239 By: Olivo Financial Institutions 3/26/2001 Introduced BACKGROUND AND PURPOSE Current lending regulations do not provide safeguards for borrowers who are asked by lenders to sign contracts with blanks to be filled in later by the lender. There are concerns that predatory lending practices target persons who have few resources to fight back with when they are cheated. People may also lack the money to seek legal counsel and the knowledge to contact an appropriate enforcement agency. House Bill 3239 provides that a home loan document in which blanks are left to be filled in after it is signed by the borrower is void. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 3239 amends the Finance Code to provide that a home loan document in which blanks are left to be filled in after it is signed by the borrower is void. EFFECTIVE DATE September 1, 2001.