A Texas homeowner obtained a home equity loan that closed at the borrower's real estate agent's office. Later, the borrower learns that this closing location may have violated Texas law. Under Texas Constitution Article XVI, Section 50(a)(6)(N), is this a valid constitutional defect?
Correct Answer
D) Yes, because home equity loan closings must occur at the office of the lender, an attorney, or a title company
Under Texas Constitution Article XVI, Section 50(a)(6)(N), a home equity loan closing must take place at the office of the lender, an attorney, or a title company. A real estate agent's office is not one of the three approved locations, making this a valid constitutional defect.
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Previous Question
A Texas homeowner has a home equity loan that was originated with proper constitutional compliance. The lender later transfers the servicing rights to a new company. The new servicer sends a monthly statement that incorrectly lists a prepayment penalty. The borrower wants to pay off the loan but fears the penalty. Under Texas law, what is the borrower's best course of action?
Next Question
A Texas homeowner wants to do a cash-out refinance of his existing conventional mortgage. The new loan will include $50,000 in cash beyond paying off the existing mortgage. Under Texas law, how is this cash-out refinance treated?