A Texas homeowner wants to convert an existing home equity loan into a non-home equity loan. Under Texas Constitution Article XVI, Section 50(f)(2), what conditions must be met?
Correct Answer
D) The homeowner must wait at least one year from the original closing and the refinanced loan must meet all conventional loan requirements
Under Texas Constitution Article XVI, Section 50(f)(2), a home equity loan may be refinanced into a non-home equity loan (such as a rate-and-term refinance) if at least one year has passed from the closing date and the new loan meets all applicable requirements for a conventional (non-home equity) loan.
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A Texas homeowner applies for a home equity loan on March 1 and receives the required disclosure notice the same day. The lender wants to close as quickly as possible. Under Texas law, what is the earliest the lender can disburse the loan proceeds after closing?
- → A Texas property owner defaults on both a first mortgage and a second-lien home equity loan. The first mortgage lender forecloses and sells the property at the trustee's sale. Under Texas law, what happens to the second-lien home equity loan?
- → Under Texas foreclosure law, a property is sold at a trustee's sale on the first Tuesday of the month. The winning bidder pays the full purchase price. Under Texas Property Code, when does the bidder receive a trustee's deed?
- → In Texas, the standard security instrument for real estate loans is a deed of trust rather than a mortgage. Which parties are involved in a Texas deed of trust?
- → Under Texas Constitution Article XVI, Section 50(a)(6), a home equity loan on a Texas homestead must comply with numerous constitutional requirements. All of the following are required provisions of a Texas home equity loan EXCEPT:
- → Under Texas Constitution Article XVI, Section 50, all of the following liens may be enforced against a Texas homestead EXCEPT:
- → A Texas homeowner closes on a home equity loan on January 15. The loan proceeds are not actually disbursed until January 18, three days after closing. The borrower exercises the right of rescission on January 26. Under Texas Constitution Article XVI, Section 50(a)(6), is this rescission timely?
- → A Texas lender fails to cure a constitutional defect in a home equity loan within the required timeframe. The borrower files a lawsuit. Under Texas Constitution Article XVI, Section 50(a)(6)(Q)(x), what is the potential penalty for the lender's failure to cure?
- → A Texas lender makes a home equity loan that violates one of the requirements of Texas Constitution Article XVI, Section 50(a)(6). After the loan is made, the lender discovers the violation. Under Texas law, the lender has how many days to cure the defect after being notified by the borrower?
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Previous Question
Under Texas Constitution Article XVI, Section 50(a)(6), a homeowner in Texas must receive counseling before closing a home equity loan. What type of counseling is required?
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David and Linda own a homestead in Texas valued at $350,000 with no existing liens. A contractor installs new kitchen cabinets but did not obtain a written contract signed by both spouses before beginning work. Under Texas Constitution Article XVI, Section 50, can the contractor place a mechanic's lien on the homestead?