Bill Summary – FastDemocracy

      
            88R400 JES-D
         
		By: Toth, Cortez, Wilson, Schaefer, et al.
            H.B. No. 264
         
               A BILL TO BE ENTITLED
            
               AN ACT
            
            relating to requirements for the physical presence of a borrower 
         
            for signing certain documents related to a home equity loan.
         
                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         
                   SECTION 1.  Section 343.002(b), Finance Code, is amended to 
         
            read as follows:
         
                   (b)  Except as provided by Subchapter D, this [This] chapter 
         
            does not apply to:
         
                         (1)  a reverse mortgage; or
         
                         (2)  an open-end account, as defined by Section 
         
            301.002.
         
                   SECTION 2.  Chapter 343, Finance Code, is amended by adding 
         
            Subchapter D to read as follows:
         
            SUBCHAPTER D. HOME EQUITY LOANS
         
                   Sec. 343.301.  DEFINITION.  In this subchapter, "home equity 
         
            loan" means an extension of credit described by Section 50(a)(6), 
         
            Article XVI, Texas Constitution.
         
                   Sec. 343.302.  PHYSICAL PRESENCE OF CERTAIN BORROWERS AT 
         
            CLOSING NOT REQUIRED.  (a) This section applies to the closing of a 
         
            home equity loan by a borrower who:
         
                         (1)  is located outside of this state at the time of the 
         
            closing and is:
         
                               (A)  a member of the armed forces of the United 
         
            States who is on active duty;
         
                               (B)  an officer of the Commissioned Corps of the 
         
            United States Public Health Service who is on active duty;
         
                               (C)  a member of reserve components of the armed 
         
            forces of the United States not described by Paragraph (A) who is on 
         
            active duty;
         
                               (D)  the spouse or surviving spouse of a person 
         
            described by Paragraph (A), (B), or (C); or
         
                               (E)  a civilian employee of the federal government 
         
            employed by, serving with, or accompanying the armed forces of the 
         
            United States, if assigned to a foreign country or a vessel or unit 
         
            of the armed forces of the United States;
         
                         (2)  has a disability that prohibits travel or is 
         
            quarantined to protect the borrower's health or the health of 
         
            others, as verified by a written letter from a physician; or
         
                         (3)  is unable to travel to the closing because the 
         
            borrower is incarcerated or under house arrest.
         
                   (b)  In lieu of closing a home equity loan in person at the 
         
            office of the lender, an attorney, or a title company, a borrower 
         
            described by Subsection (a) may close the loan:
         
                         (1)  from a remote location using remote online 
         
            notarization; or
         
                         (2)  through an agent who:
         
                               (A)  is acting under a durable power of attorney 
         
            that expressly grants the agent the authority to engage in a home 
         
            equity loan transaction on behalf of the borrower, regardless of 
         
            where the borrower signed the power of attorney; and
         
                               (B)  appears in person for the closing at the 
         
            office of the lender, attorney, or title company on behalf of the 
         
            borrower.
         
                   SECTION 3.  Section 751.203(b), Estates Code, is amended to 
         
            read as follows:
         
                   (b)  A certification described by Subsection (a) may be in 
         
            the following form:
         
            CERTIFICATION OF DURABLE POWER OF ATTORNEY BY AGENT
         
                   I, ___________ (agent), certify under penalty of perjury 
         
            that:
         
                   1.  I am the agent named in the power of attorney validly 
         
            executed by ___________ (principal) ("principal") on ____________ 
         
            (date), and the power of attorney is now in full force and effect.
         
                   2.  The principal is not deceased and is presently domiciled 
         
            in ___________ (city and state/territory or foreign country).
         
                   3.  To the best of my knowledge after diligent search and 
         
            inquiry:
         
                         a.  The power of attorney has not been revoked by the 
         
            principal or suspended or terminated by the occurrence of any 
         
            event, whether or not referenced in the power of attorney;
         
                         b.  At the time the power of attorney was ex
Statutes affected: 
Introduced: Finance Code 343.002, Estates Code 751.203, Estates Code 752.051 (Finance Code 343, Estates Code 751, Estates Code 752)
House Committee Report: Finance Code 343.002, Estates Code 751.203, Estates Code 752.051 (Finance Code 343, Estates Code 751, Estates Code 752)
Engrossed: Finance Code 343.002, Estates Code 751.203, Estates Code 752.051 (Finance Code 343, Estates Code 751, Estates Code 752)

	88R400 JES-D

	By: Toth, Cortez, Wilson, Schaefer, et al.	H.B. No. 264



	A BILL TO BE ENTITLED
	AN ACT
	relating to requirements for the physical presence of a borrower
	for signing certain documents related to a home equity loan.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 343.002(b), Finance Code, is amended to
	read as follows:
	(b) Except as provided by Subchapter D, this [~~This~~] chapter
	does not apply to:
	(1) a reverse mortgage; or
	(2) an open-end account, as defined by Section
	301.002.
	SECTION 2. Chapter 343, Finance Code, is amended by adding
	Subchapter D to read as follows:
	SUBCHAPTER D. HOME EQUITY LOANS
	Sec. 343.301. DEFINITION. In this subchapter, "home equity
	loan" means an extension of credit described by Section 50(a)(6),
	Article XVI, Texas Constitution.
	Sec. 343.302. PHYSICAL PRESENCE OF CERTAIN BORROWERS AT
	CLOSING NOT REQUIRED. (a) This section applies to the closing of a
	home equity loan by a borrower who:
	(1) is located outside of this state at the time of the
	closing and is:
	(A) a member of the armed forces of the United
	States who is on active duty;
	(B) an officer of the Commissioned Corps of the
	United States Public Health Service who is on active duty;
	(C) a member of reserve components of the armed
	forces of the United States not described by Paragraph (A) who is on
	active duty;
	(D) the spouse or surviving spouse of a person
	described by Paragraph (A), (B), or (C); or
	(E) a civilian employee of the federal government
	employed by, serving with, or accompanying the armed forces of the
	United States, if assigned to a foreign country or a vessel or unit
	of the armed forces of the United States;
	(2) has a disability that prohibits travel or is
	quarantined to protect the borrower's health or the health of
	others, as verified by a written letter from a physician; or
	(3) is unable to travel to the closing because the
	borrower is incarcerated or under house arrest.
	(b) In lieu of closing a home equity loan in person at the
	office of the lender, an attorney, or a title company, a borrower
	described by Subsection (a) may close the loan:
	(1) from a remote location using remote online
	notarization; or
	(2) through an agent who:
	(A) is acting under a durable power of attorney
	that expressly grants the agent the authority to engage in a home
	equity loan transaction on behalf of the borrower, regardless of
	where the borrower signed the power of attorney; and
	(B) appears in person for the closing at the
	office of the lender, attorney, or title company on behalf of the
	borrower.
	SECTION 3. Section 751.203(b), Estates Code, is amended to
	read as follows:
	(b) A certification described by Subsection (a) may be in
	the following form:
	CERTIFICATION OF DURABLE POWER OF ATTORNEY BY AGENT
	I, ___________ (agent), certify under penalty of perjury
	that:
	1. I am the agent named in the power of attorney validly
	executed by ___________ (principal) ("principal") on ____________
	(date), and the power of attorney is now in full force and effect.
	2. The principal is not deceased and is presently domiciled
	in ___________ (city and state/territory or foreign country).
	3. To the best of my knowledge after diligent search and
	inquiry:
	a. The power of attorney has not been revoked by the
	principal or suspended or terminated by the occurrence of any
	event, whether or not referenced in the power of attorney;
	b. At the time the power of attorney was ex Statutes affected: Introduced: Finance Code 343.002, Estates Code 751.203, Estates Code 752.051 (Finance Code 343, Estates Code 751, Estates Code 752) House Committee Report: Finance Code 343.002, Estates Code 751.203, Estates Code 752.051 (Finance Code 343, Estates Code 751, Estates Code 752) Engrossed: Finance Code 343.002, Estates Code 751.203, Estates Code 752.051 (Finance Code 343, Estates Code 751, Estates Code 752)