By: Carona S.B. No. 1067
A BILL TO BE ENTITLED
AN ACT
relating to home equity lending and high-cost home loans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 11, Finance Code, is
amended by adding Section 11.308 to read as follows:
Sec. 11.308. INTERPRETATION OF HOME EQUITY LENDING LAW.
The finance commission may, on request of an interested person or on
its own motion, issue interpretations of Sections 50(a)(5)-(7),
(e)-(p), (t), and (u), Article XVI, Texas Constitution. An
interpretation under this section is subject to Chapter 2001,
Government Code, and is applicable to all lenders authorized to
make extensions of credit under Section 50(a)(6), Article XVI,
Texas Constitution, except lenders regulated by the Credit Union
Commission. The finance commission and the Credit Union Commission
shall attempt to adopt interpretations that are as consistent as
feasible or shall state justification for any inconsistency.
SECTION 2. Subchapter E, Chapter 15, Finance Code, is
amended by adding Section 15.413 to read as follows:
Sec. 15.413. INTERPRETATION OF HOME EQUITY LENDING LAW.
The commission may, on request of an interested person or on its own
motion, issue interpretations of Sections 50(a)(5)-(7), (e)-(p),
(t), and (u), Article XVI, Texas Constitution. An interpretation
under this section is subject to Chapter 2001, Government Code, and
is applicable to lenders regulated by the commission. The Finance
Commission of Texas and the commission shall attempt to adopt
interpretations that are as consistent as feasible or shall state
justification for any inconsistency.
SECTION 3. Subchapter C, Chapter 343, Finance Code, is
amended by adding Section 343.206 to read as follows:
Sec. 343.206. CHARGE PROHIBITED FOR PRODUCT OR SERVICE NOT
RECEIVED. A lender, in connection with a high-cost home loan, may
not charge a borrower an amount for a service or product if the
borrower does not receive the service or product.
SECTION 4. Subsection (b), Section 343.102, Finance Code,
is repealed.
SECTION 5. This Act takes effect on the date on which the
constitutional amendment proposed by the 78th Legislature, Regular
Session, 2003, authorizing a home equity line of credit, providing
for administrative interpretation of home equity lending law, and
otherwise relating to the making, refinancing, repayment, and
enforcement of home equity loans takes effect. If that amendment is
not approved by the voters, this Act has no effect.