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An equity loan may be closed only at an office of the lender,
an attorney at law, or a title company. The lender is anyone authorized
under Section 50(a)(6)(P) that advances funds directly to the owner
or is identified as the payee on the note.
(1)An equity loan must be closed at the permanent
physical address of the office or branch office of the lender, attorney,
or title company. The closing office must be a permanent physical
address so that the closing occurs at an authorized physical location
other than the homestead. The closing may occur in any area located
at the permanent physical address of the lender, attorney, or title
company (e.g., indoor office, parking lot).
(2)Any power of attorney allowing an attorney-in-fact
to execute closing documents on behalf of the owner or the owner's
spouse must be signed by the owner or the owner's spouse at the permanent
physical address of an office of the lender, an attorney at law, or
a title company. A lender may rely on an established system of verifiable
procedures to evidence compliance with this paragraph. For example,
this system may include one or more of the following:
(A)a written statement in the power of attorney acknowledging
the date and place at which the power of attorney was executed;
(B)an affidavit or written certification of a person
who was present when the power of attorney was executed, acknowledging
the date and place at which the power of attorney was executed; or
(C)a certificate of acknowledgement signed by a notary
public under Chapter 121, Civil Practice and Remedies Code, acknowledging
the date and place at which the power of attorney was executed.
(3)The consent required under Section 50(a)(6)(A)
must be signed by the owner and the owner's spouse, or an attorney-in-fact
described by paragraph (2) of this subsection, at the permanent physical
address of an office of the lender, an attorney at law, or a title
company.
The agency certifies that legal counsel has
reviewed the adoption and found it to be a valid exercise of the agency's
legal authority.
Filed with the Office
of the Secretary of State on November 6, 2020
TRD-202004692 Matthew Nance
Deputy General Counsel, Office of Consumer Credit Commissioner
Joint Financial Regulatory Agencies
Effective date: November 26, 2020
Proposal
publication date: September 4, 2020
For further information, please call: (512) 936-7660
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