The Finance Commission of Texas and the Texas Credit Union Commission (“Commissions”) have jointly revised the following home equity Interpretations of §50(a)(6), Article XVI, Texas Constitution: §153.13 (Preclosing Disclosures), §153.18 (Limitation on Application of Proceeds), and §153.20 (No Blanks in Any Instrument). These revised Interpretations are published in the June 23, 2006 issue of the Texas Register (Vol. 31, No. 25) and become effective June 29, 2006. The full text of revised §§153.13, 153.18, and 153.20 are printed below along with our comments contained at the end of each Interpretation: “§153.13. Preclosing Disclosures: Section 50(a)(6)(M)(ii). An equity loan may not be closed before one business day after the date that the owner of the homestead receives a final itemized disclosure of the actual fees, points, interest, costs, and charges that will be charged at closing. If a bona fide emergency or another good cause exists and the lender obtains the written consent of the owner, the lender may provide the documentation to the owner or the lender may modify previously provided documentation on the date of closing. (1) A lender may satisfy the disclosure requirement of this section by delivery to the borrower of a properly completed Department of Housing and Urban Development (HUD) disclosure Form HUD-l or HUD-lA. (2) Bona fide emergency. (A) An owner may consent to receive the preclosing disclosure or a modification of the preclosing disclosure on the date of closing in the case of a bona fide emergency occurring before the date of the extension of credit. An equity loan secured by a homestead in an area designated by Federal Emergency Management Agency (FEMA) as a disaster area is an example of a bona fide emergency if the homestead was damaged during FEMA’s declared incident period.
