The resolution proposed by Toth (H.J.R. No. 75) aims to amend the Texas Constitution to allow the legislature to create exceptions to the existing 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 for home equity loans, potentially making it easier for homeowners to access credit secured by their home equity. The resolution includes various conditions and protections to ensure the safety and rights of homeowners during these financial transactions, emphasizing the need for informed consent and safeguarding against forced sales.

Additionally, the resolution outlines specific regulations regarding home equity loans, including the necessity for voluntary agreement from all homeowners and their spouses, limitations on total debt secured by the home, and requirements for court orders in foreclosure cases. It also guarantees borrowers the right to prepay loans without penalties and mandates clear disclosures about loan terms and rights. The proposed constitutional amendment is set to be voted on in the upcoming election on November 4, 2025, allowing voters to decide whether to support or oppose changes to the closing process for home equity loans in Texas.