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TITLE 7 | BANKING AND SECURITIES |
PART 8 | JOINT FINANCIAL REGULATORY AGENCIES |
CHAPTER 153 | HOME EQUITY LENDING |
RULE §153.3 | Limitation on Equity Loan Amount: Section 50(a)(6)(B) |
An equity loan must be of a principal amount that when added to the aggregate total of the outstanding principal balances of all other indebtedness secured by valid encumbrances of record against the homestead does not exceed 80 percent of the fair market value of the homestead on the date the extension of credit is made. For example, on a property with a fair market value of $100,000, the maximum amount of debt against the property permitted by Section 50(a)(6)(B) is $80,000. Assuming existing debt of $30,000, the maximum amount of the equity loan debt is $50,000. |
Source Note: The provisions of this §153.3 adopted to be effective January 8, 2004, 29 TexReg 84 |