Home equity loans are defined as loans that are collateralized by a non-purchase money mortgage or deed of trust on the borrower’s principal residence. The borrower’s equity, relative to the value of the residence, provides protection for the loan and determines the maximum amount of credit that may be advanced.
Traditionally, home equity loans have been used to fund home improvements or consolidate debt; however, their popularity has expanded considerably. Uses now include consumer purchases, personal investments, working capital for small business, and a supplement to personal income.
Although home equity lending has existed for many years in other states, Texas home equity loan made under Texas law will differ from these in two major respects:
The borrower may not be held personally liable for repayment of the loans; and,
The bank may forfeit principal and interest if it fails to comply with the many requirements of the enabling Constitutional Amendment and is not able to cure the violation under Section (6)(Q)(x).
With an area of 268,581 square miles, Texas is second to Alaska in topographical area and second to California in population density. That is often understood in how real estate and home mortgages are such big business in this southwestern Great Plains.
There’s no shortage of home equity loans in Texas. Ever since Texas declared its independence from Mexico from 1836, Texas had been a favorite destination for puritans and pilgrims. Texas still attracts home seekers to this date, especially when the land is known to produce such quantities of cotton and oil.
Because provisions of the Texas Constitution related to home equity lending have significant penalties to the lender for non-compliance, it will be necessary to evaluate the institution’s compliance to the constitutional provision to assess risk adequately.
Although many of the following procedures have characteristics of consumer compliance procedures, in reality the primary focus is one of safety and soundness.
In addition, a complying loan does not necessarily mean that a loan will be considered low-risk by the examiners. Repayment capacity and history, collateral value and position, and all other traditional measures of loan quality will also be assessed.
Although they share many attributes with consumer loans and may be administered by a bank’s consumer loan department, Texas home equity loans will be individually sampled by examiners and should be reported in the call report as loans secured by 1-4 family residential property.
Recently, a number of Texas home equity loan holders have doubled since the 1997 constitutional amendment of the Texas decree for home equity. The constitutional amendment allowed a wider used of home equity, resulting to more Texas home equity loans to be released.
Despite its being based in San Francisco, Wells Fargo had made a considerable reach over the past years. Forbes rank Well Fargo group as one of the top 25 U.S. companies in all industries based on a composite ranking of revenue, profits, assets, and market value.
Over the years of service, Wells Fargo earned the top pick for Texas home equity loans. So if you are considering a safe Texas home equity loan, be sure to pick the time tested Wells Fargo.
Like Wachovia Lending Center. This equity lender is a nice choice for Texan credit and loan products. Whether you’re seeking a permanent Texas residence, or shopping for a new car or funding your children’s educational expenses, a good financial support can be achieve by a Wachovia home equity loan in Texas.
