Texas Home Equity Loans, Proposition 8 (2007)
The Texas Home Equity Loans Amendment, also known as Proposition 8, was on the November 6, 2007 ballot in Texas as a legislatively-referred constitutional amendment, where it was approved. The measure clarified certain provisions relating to the making of a home equity loan and the use of home equity loan proceeds.
|Texas Proposition 8 (2007)|
Election results via: Legislative Reference Library of Texas
Text of measure
The text of the measure can be read here.
Supporters of the amendment believed that Proposition 8 would reduce predatory lending practices and provide more safeguards against mortgage fraud. This would be done by:
- Requiring a printed copy of the loan would reduce miscommunication between written and oral agreements.
- Allowing homeowners to recover quicker in the event of emergencies like Hurricane Katrina
- Stopping pre-printed checks would reduce identity theft
- Reducing paperwork required by mortgage companies while retaining the safety net for borrowers
- Stopping borrowers from declaring their land as agricultural to avoid foreclosure
Opponents believed that Proposition 8 failed to address the purpose of calculating fees associated with home equity loans. This dispute was settled in ACORN, et al. v. Finance Commission of Texas, et al. which stated that fees are not subject to a 3 percent cap on the loan, but the opposition believe it should be addressed in the legislature.
Another point made was that if the legislature wanted to reduce mortgage fraud, then oral agreements should be disallowed.
Media editorial positions
- The Dallas Morning News said, "This amendment would further clarify the rules for consumers when they seek a second mortgage. We recommend a yes vote."
- The Austin Chronicle said, "This is just a necessary cleanup of home-equity loan procedures, and it's a damn shame it has to be done through the Constitution, but it would protect some borrowers otherwise at risk."
Path to the ballot
- See also: Laws governing direct democracy in Texas
As laid out in Article 17 of the Texas Constitution, in order for a proposed constitutional amendment to be placed on the ballot, the Texas State Legislature must propose the amendment in a joint resolution of both the Texas State Senate and the Texas House of Representatives. The joint resolution can originate in either the House or the Senate. The resolution must be adopted by a vote of at least two-thirds of the membership of each house of the legislature. That amounts to a minimum of 100 votes in the House of Representatives and 21 votes in the Senate.
- Texas 2007 ballot measures
- 2007 ballot measures
- List of Texas ballot measures
- History of direct democracy in Texas
- Legislative Reference Library of Texas, "Constitutional amendment election dates," accessed January 19, 2015
- Texas Legislative Council, "Amendments to the Texas Constitution Since 1876," accessed January 19, 2015
- McGlinchey Stafford, "Case Alert Update: ACORN, et al. v. Finance Commission of Texas, et al.," 2006
- Dallas Mornings News, "We Recommend," October 22, 2007
- Austin Chronicle, "Austin Chronicle Recommendations," November 2, 2007
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