Home Equity Lending

Home equity lending regulations were adopted effective Jan. 8, 2004 to clarify and incorporate into regulations the Texas Constitution’s limitations on where home equity loans may be closed.

The regulations were amended effective Nov. 26, 2020 to provide further guidance on what constitutes the “permitted” location: “ (1) An equity loan must be closed at the permanent physical address of the office or branch office of the lender, attorney, or title company. The closing office must be a permanent physical address so that the closing occurs at an authorized physical location other than the homestead. The closing may occur in any area located at the permanent physical address of the lender, attorney, or title company (e.g., indoor office, parking lot).” The Constitutional requirements can be found in Section 50(N) of the Texas Constitution.  

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.

Reference

Additional information and resources about this issue, including rules, forms, websites or other documents.