Robert, a Texas homeowner, applies for a home equity loan on his homestead on June 1. The lender approves the loan and wants to schedule closing immediately. Under Texas Constitution Article XVI, Section 50(a)(6)(M), what is the earliest date the loan may close?
Correct Answer
B) June 13, which is 12 calendar days after the application date
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 date the borrower submits the loan application. With an application date of June 1, the earliest closing date is June 13.
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Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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Previous Question
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?
Next Question
A married couple in Texas obtains a home equity loan on their homestead. Two years later, one spouse passes away. The surviving spouse wants to refinance the home equity loan into a conventional rate-and-term loan. Under Texas Constitution Article XVI, Section 50(f)(2), what must be satisfied?