Patricia receives a home equity loan application from a Texas homeowner on April 1. She processes the loan and presents the final terms on April 5. Under Texas Constitution Article XVI, Section 50(a)(6), when is the earliest the loan can close?
Correct Answer
C) April 13, because there must be a 12-day waiting period between the loan application and closing
Under Texas Constitution Article XVI, Section 50(a)(6)(M), a home equity loan on a homestead cannot close before the 12th day after the borrower submits the loan application. The application was submitted April 1, so the earliest closing date is April 13 (12 days later).
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In Texas, a deed of trust is the standard security instrument used in real estate financing. What role does the trustee play in a Texas deed of trust arrangement?
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James and Olivia, a married couple, own a homestead in Dallas, Texas. James wants to obtain a home equity loan, but Olivia refuses to sign the loan documents. The lender suggests that James alone can proceed since the property deed is only in his name. Under Texas law, which statement is correct?