House Bill No. 957 amends the Texas 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 clarifies that the signing requirements for home equity loan documents can be waived under these conditions and updates the certification process for agents to ensure their authority in home equity transactions.

Furthermore, the bill amends the Durable Power of Attorney Act to clarify the responsibilities and liabilities of agents acting under a power of attorney, stating that agents who violate the Act or exceed their authority may face legal consequences. The changes will only apply to durable powers of attorney executed on or after January 1, 2026, contingent upon voter approval of a proposed constitutional amendment that would allow exceptions to the requirement that home equity loans be closed at specific locations. 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 (Finance Code 343, Estates Code 752, Estates Code 751)