| (a) The purpose of the rules contained in this subchapter
is to provide a model plain language contract in English for Texas
Finance Code, Chapter 342, Subchapter G (secondary mortgage loans
with an effective rate of greater than 10%) home equity loan transactions.
The establishment of model provisions for these transactions will
encourage use of simplified wording that will ultimately benefit consumers
by making these contracts easier to understand. Use of the "plain
language" model contract by a licensee is not mandatory. The licensee,
however, may not use a contract other than a model contract unless
the licensee has submitted the contract to the OCCC in compliance
with §90.104 of this title (relating to Non-Standard Contract
Filing Procedures). The OCCC will issue an order disapproving the
contract if the OCCC determines the contract does not comply with
Texas Finance Code, §341.502 or rules adopted under this chapter.
A licensee may not claim the OCCC's failure to disapprove a contract
constitutes an approval.
(b) The provisions in this subchapter are intended
to constitute a complete plain language Chapter 342, Subchapter G
home equity loan contract; however, a licensee is not limited to the
contract provisions addressed by these rules.
|
| Source Note: The provisions of this §90.401 adopted to be effective August 31, 2006, 31 TexReg 6680; amended to be effective September 9, 2010, 35 TexReg 8104; amended to be effective November 5, 2015, 40 TexReg 7635 |
