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A BILL TO BE ENTITLED
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AN ACT
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relating to certain notifications to borrowers required for home |
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equity loans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 343, Finance Code, is |
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amended by adding Section 343.107 to read as follows: |
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Sec. 343.107. NOTICES REGARDING HOME EQUITY LOANS. (a) In |
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this section, "home equity loan" means an extension of credit |
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described by Section 50(a)(6), Article XVI, Texas Constitution. |
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(b) If any term of a home equity loan is modified, the lender |
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shall promptly notify the borrower in writing of the modification. |
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(c) If an application for a home equity loan is incomplete, |
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the lender shall promptly notify the prospective borrower of the |
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deficiency in the application to allow, to the extent possible, the |
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borrower to provide the required information before any applicable |
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deadline for completion of the application. |
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SECTION 2. Section 343.107(c), Finance Code, as added by |
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this Act, applies only to an application for a loan submitted on or |
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after the effective date of this Act. An application submitted |
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before the effective date of this Act is governed by the law in |
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effect when the application was submitted, and the former law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |