House Bill No. 957 amends the Finance Code to introduce new provisions regarding the physical presence of borrowers during the signing of home equity loan documents. It establishes Subchapter D, which defines "home equity loan" and outlines specific circumstances under which certain borrowers—such as active-duty military members, individuals with disabilities, or those unable to travel due to incarceration or house arrest—are exempt from being physically present at the closing. Instead, these borrowers can utilize remote online notarization or appoint an agent with a durable power of attorney to represent them.

The bill also modifies existing language in the Estates Code to clarify the requirements for durable powers of attorney in home equity loan transactions, mandating that such powers must be executed at the lender's, attorney's, or title company's office unless an exception applies. Furthermore, it amends the Durable Power of Attorney Act to specify the responsibilities and liabilities of agents, stating that those who violate the Act or exceed their authority may face legal consequences. The changes will take effect on January 1, 2026, contingent upon voter approval of a proposed constitutional amendment that would allow exceptions to the current requirement for home equity loan closings. If the amendment is not approved, the Act will not take effect.

Statutes affected:
Introduced: Finance Code 343.002, Estates Code 751.203, Estates Code 752.051 (Estates Code 751, Finance Code 343, Estates Code 752)