An owner applies for a Texas home equity loan on 4 May 2026 and the lender delivers the required notice on 8 May. Which date starts the constitutional 12-day waiting period for closing?
Correct Answer
B) Closing may not occur before the 12th day after 8 May
The loan may not close before the 12th day after the later of the date the owner submits the application or the date the lender provides the prescribed notice, so the clock runs from 8 May here. Other choices: running it from the 4 May application takes the earlier of the two dates rather than the later; prompt delivery of the notice shortens nothing; and 30 days is not the period. Source: Tex. Const. art. XVI, sec. 50(a)(6)(M)(i)
Why This Is the Correct Answer
The loan may not close before the 12th day after the later of the date the owner submits the application or the date the lender provides the prescribed notice, so the clock runs from 8 May here. Other choices: running it from the 4 May application takes the earlier of the two dates rather than the later; prompt delivery of the notice shortens nothing; and 30 days is not the period. Source: Tex. Const. art. XVI, sec. 50(a)(6)(M)(i)
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