Grace receives the required disclosures for a home equity loan on her Texas homestead. Under Texas Constitution Article XVI, Section 50(a)(6), at least how many days before closing must Grace receive the disclosure notice advising her of the risks of a home equity loan?
Correct Answer
C) At least 12 calendar days before closing, at the time of application
Under Texas Constitution Article XVI, Section 50(a)(6)(M)(ii), the borrower must receive a disclosure notice — known as the 12-day notice — at least 12 days before the home equity loan closes. This notice must be provided at the time of application and advises the borrower of the conditions and risks of the loan.
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- → 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?
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Previous Question
A Texas lender requires a borrower to provide personal property — specifically, the borrower's car and jewelry — as additional collateral for a home equity loan on the borrower's homestead. Under Texas Constitution Article XVI, Section 50(a)(6), is this requirement permissible?
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A Texas homeowner currently has a home equity loan on her homestead. She wants to take out a second home equity loan while the first is still outstanding. Under Texas Constitution Article XVI, Section 50(a)(6), what must she do first?