Sec. 343.101. REFINANCING. (a) For purposes of this section, a low-rate home loan is a home loan that at its inception carries an interest rate two percentage points or more below the yield on treasury securities having comparable periods of maturity to the loan maturity, except that if the loan's interest rate is a discounted introductory rate or a rate that automatically steps up over time, the fully indexed rate or the fully stepped-up rate, as appropriate, shall be used instead of the rate at the loan's inception to determine whether the loan is a low-rate loan.

(b) A lender may not replace or consolidate a low-rate home loan directly made by a government or nonprofit lender before the seventh anniversary of the date of the loan unless the new or consolidated loan has a lower interest rate and requires payment of a lesser amount of points and fees than the original loan or is a restructure to avoid foreclosure.

Added by Acts 2001, 77th Leg., ch. 622, Sec. 1, eff. Sept. 1, 2001.

Notwithstanding the approval by the voters on Sept. 13, 2003, of the constitutional amendment authorizing the continuation of this section, this section expired as provided by Subsection (b) on Sept. 1, 2003.

Sec. 343.102. DISCLOSURE IN CONNECTION WITH CERTAIN HOME LOANS. (a) For a home loan with an interest rate of 12 percent or greater a year, when the lender makes the disclosure required under the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. Section 2601 et seq.), as amended, for the good faith estimate, or if that Act does not apply, three business days after the date the application is made, the lender shall also provide to the borrower:

(1) a statement regarding the value of mortgage counseling before taking out a home loan;

(2) a list of the nearest available housing counseling agencies approved by the United States Department of Housing and Urban Development;

(3) a list of other resources where mortgage information can be found, including toll-free telephone numbers and online resources; and

(4) other disclosures required by the finance commission, including an official notice regarding high-cost home loans.

(b) This section expires September 1, 2003.

Added by Acts 2001, 77th Leg., Ch. 622 (S.B. 1581), Sec. 1, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., Ch. 1207 (S.B. 1067), Sec. 4, eff. Sept. 13, 2003.