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HJR 40

Proposing a constitutional amendment to remove 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 Richard Hayes and 4 co-sponsors

Texas constitutional amendment would allow home equity loan closings outside lenders' offices, attorneys' offices, and title companies, potentially expanding convenience but reducing traditional consumer protections.

Reported favorably w/o amendment(s)
#civilremedies&liabilities(i0065) #homeequity(s6973) #loans(s0117) #propertyinterests--homestead(i0616) #propertyinterests--mortgages&liens(i0605) #resolutions--constitutionalamendments(i0661)
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Bill Summary · HJR 40

Legislative bill overview

HJR 40 proposes a constitutional amendment to Texas law that would eliminate the current requirement that home equity loan closings must occur exclusively at a lender's office, an attorney's office, or a title company. This would allow home equity loan closings to take place at other locations, potentially including borrowers' homes or other venues.

Why is this important

Home equity loans are a significant financial tool for Texas homeowners, representing substantial sums of money and creating long-term debt obligations. The location where these transactions close can affect accessibility for borrowers, costs for lenders, and the oversight mechanisms in place to protect consumers during the transaction process.

Potential points of contention

  • Consumer Protection Concerns: Removing the requirement to close at professional offices may reduce oversight and create vulnerability to fraud or predatory lending practices, since traditional closing locations typically involve neutral third parties (attorneys, title companies) who verify documentation
  • Cost and Convenience Trade-offs: While allowing alternative closing locations could reduce costs and improve convenience for some borrowers, it may disproportionately benefit lenders' operational flexibility over borrower protections
  • Regulatory Implementation: The amendment would require subsequent legislation to define alternative acceptable closing locations and establish new safeguards, creating potential gaps in consumer protection during the transition period

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

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