Regulators Seek Interpretation Amendments on Home Equity Lending; Urge Caution in Making Loans Before Adoption
Joint Statement | Nov. 15, 2017
As home equity lending changes become reality, state regulatory authorities have proposed interpretation amendments to clarify the finer points of SJR 60. The amendments, published in the Texas Register on Nov. 24, 2017 are expected to be presented for final adoption at the February and March meetings of the Finance Commission and Credit Union Commission with an expected effective date in late March.
In the meantime, the agencies cautioned lenders about making home equity loans during the first 12 days of January due to an attorney general opinion (DM-452, 1997) on the 12-day notice requirement. They also cautioned that lenders can't rely on proposed interpretation amendments before they are approved in March, therefore leaving lenders without interpretive guidance in the meantime.
Proposed SJR 60 Interpretation Amendments »
Joint Financial Regulatory Agencies Statement »