The proposed joint resolution, H.J.R. No. 40, aims to amend the Texas Constitution by eliminating the requirement that home equity loans must be closed exclusively at the offices of lenders, attorneys, or title companies. This amendment seeks to enhance flexibility in the closing process, potentially making it easier for homeowners to access credit secured by their home equity. The resolution includes several protections for homeowners, such as a mandatory waiting period before closing, the need for written consent from both spouses for family homesteads, and clear disclosures from lenders regarding loan terms.

In addition to the proposed changes, the resolution retains important protections for borrowers, including limits on loan fees, the prohibition of personal liability unless fraud is involved, and the requirement for lenders to forfeit principal and interest if they fail to meet their obligations. The amendment also stipulates that home equity loans cannot exceed 80% of the home's fair market value, borrowers can prepay without penalties, and only one home equity loan can be secured at a time. Voters will have the opportunity to decide on this amendment in an election scheduled for November 4, 2025, and if discussions occur in a language other than English, a translated notice must be provided before closing.