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HJR 75

Proposing a constitutional amendment authorizing the legislature to provide for exceptions to the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.

89th Legislature (2025) Introduced by Steve Toth

Proposes constitutional amendment allowing Texas legislature to exempt home equity loan closings from current location-based requirements, enabling alternative closing methods and venues.

Referred to Pensions, Investments & Financial Services
#financial--savings&loans(i0367) #homeequity(s6973) #loans(s0117) #resolutions--constitutionalamendments(i0661)
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WeVote Research Nonpartisan
Bill Summary · HJR 75

Legislative bill overview

This joint resolution proposes a constitutional amendment to Texas's home equity loan closing requirements. Currently, Texas law mandates that home equity loan closings occur only at the offices of the lender, an attorney, or a title company. The amendment would authorize the legislature to create exceptions to this requirement, allowing closings to potentially occur in other locations or through alternative methods.

Why is this important

Home equity loans are a significant financial product that many Texans use to access credit based on their home's value. This amendment would give the legislature flexibility to modernize closing procedures—potentially enabling remote closings or other convenient alternatives—which could reduce costs and increase accessibility. However, the current location requirement exists as a consumer protection mechanism to ensure proper oversight and documentation of these secured transactions.

Potential points of contention

  • Consumer protection concerns: The physical location requirement ensures closings occur in regulated, professional environments with legal oversight. Exceptions could create opportunities for fraud or improper handling of significant financial transactions.
  • Lender convenience vs. borrower protection: While alternative closing methods might benefit consumers through convenience and lower costs, they could also enable predatory lending practices by reducing procedural barriers and third-party oversight.
  • Scope of amendment language: The phrase "exceptions to the requirement" is deliberately broad, leaving undefined what alternative arrangements the legislature could authorize, raising questions about how far this could extend.

Compiled from official sources — confirm details with the bill’s official record.

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