Texas amended the state constitution with respect to “home equity loans.” The constitutional amendment: lowers the 3% home equity loan fee cap to 2% (of the original principal balance); sets forth additional fees that are exempt from the 2% fee cap; revises the content of the Notice Concerning Extensions of Credit; permits home equity loans for agricultural homestead property (previously prohibited); amends refinancing requirements; explicitly permits subsidiaries of banks, savings and loan associations and credit unions to make home equity loans; and allows subsequent advances under a HELOC to be made if the outstanding principal balance is less than 80% of the fair market value of the property (rather than 50%). The constitutional amendment becomes effective January 1, 2018.
See Texas Legislature website for the full text of the constitutional amendment:
http://www.capitol.state.tx.us/tlodocs/85R/billtext/pdf/SJ00060F.pdf#navpanes=0
