Emergency Guidance on Home Equity Lending
Signing locations and more addressed in guidance published by Texas Joint Financial Regulatory Agencies
April 2, 2020
The Texas Joint Financial Regulatory Agencies—which include the Department of Banking, Department of Savings and Mortgage Lending, Office of Consumer Credit Commissioner and the Texas Credit Union Department—have published guidance on emergency measures for home equity lending
during the COVID-19 public health crisis.
Their guidance addresses the following topics:
- Existing HELOC
- Refinance of home equity loan
- Modification of existing home equity loan
- Authorized closing locations
On the subject of authorized closing locations, the agencies write, "Lenders working with consumers on home equity loans must remain cognizant of the requirements in Section 50(a)(5)(D) and 50(a)(6)(N) and work with a qualified attorney to develop a plan to ensure loans are closed appropriately. The agencies agree that a reasonable option may include closing in any area located at the permanent physical address of the office or branch office of the lender, attorney, or title company, as described by the interpretation at 7 Texas Administrative Code §153.15 (e.g., a parking lot)."
Review the agencies' guidance »
This is simply guidance from a regulatory agency and is not necessarily binding on the state Constitution. Future courts may disagree or interpret the law differently. Consult your underwriter regarding any novel approach to closing such a loan.
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