A Texas homeowner wants to refinance his existing home equity loan into a conventional rate-and-term refinance. The home equity loan closed 8 months ago. Under Texas Constitution Article XVI, Section 50(f)(2), can he proceed with the refinance now?
Correct Answer
B) No, because he must wait at least 12 months from the closing date of the original home equity loan
Under Texas Constitution Article XVI, Section 50(f)(2), a home equity loan may be converted to a non-home equity loan only after at least one year (12 months) has passed since the original closing date. Since the loan closed only 8 months ago, the borrower must wait 4 more months.
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RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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.
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Sandra, a senior homeowner in Texas, is considering a reverse mortgage on her homestead. Under Texas Constitution Article XVI, Section 50(k), which of the following requirements must be met?
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A married couple in Texas purchases a home using a deed of trust as the security instrument. The husband dies unexpectedly, and the wife wants to understand the loan structure. Under Texas deed of trust law, who holds the power of sale if the borrower defaults?