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 change is intended to provide homeowners with greater flexibility in the closing process, potentially facilitating easier access to credit secured by home equity. While the resolution seeks to modernize the home equity loan process, it also maintains essential protections for borrowers, such as the right to rescind the loan within three days and compliance with established regulations.

In addition to modifying the closing requirements, the resolution outlines specific protections for borrowers, including the need for voluntary consent from all homeowners and their spouses, limits on loan amounts based on the home's fair market value, and guidelines regarding fees and repayment terms. It also ensures that borrowers can prepay loans without penalties and mandates that translated notices be provided if discussions occur in a language other than English. If approved, this amendment will be presented to voters on November 4, 2025, allowing them to decide on the proposed changes.