Important Information about Texas Section 50(a)(6) loans in 2018.
On November 7, 2017 Texas voters approved Proposition 2, the amendment relating to the home equity provisions of the Constitution, Article XVI, Section 50(a)(6). The amendment changed a number of provisions regarding Texas 50(a)(6) loans.
Although the impacts to Agency guidelines are minimal, a new requirement for Texas 50(a)(6) loans effective January 1, 2018 include a revised form of 12-day notice.
Consequently, it is highly advised that all current loans in the pipeline subject to Texas 50(a)(6) should fund by Friday, December 29, 2017 to avoid the 12-day notice requirement, being implemented on January 1, 2018.
All loans subject to Texas 50(a)(6) funding on or after January 1, 2018 will be subject to the newly enacted provisions within Proposition 2 that amended the Texas Constitution , 50(a)(6).
NOTE: As per agency requirements there will not be any funding, of any loan subject to Texas 50(a)(6) during the first 12 days of 2018 in order to comply with Texas Constitution.
Please contact your Manager with any questions.