An equity loan may not be closed before the first anniversary of the closing date of any other equity loan secured by the same homestead property, unless the owner on oath requests an earlier closing due to a state of emergency that has been declared by the president of the United States or the governor as provided by law, and applies to the area where the homestead is located.
  (1) Section 50(a)(6)(M)(iii) prohibits an owner who has obtained an equity loan from:
    (A) refinancing the equity loan before one year has elapsed since the loan's closing date; or
    (B) obtaining a new equity loan on the same homestead property before one year has elapsed since the previous equity loan's closing date, regardless of whether the previous equity loan has been paid in full.
  (2) Section 50(a)(6)(M)(iii) does not prohibit modification of an equity loan before one year has elapsed since the loan's closing date. A modification of a home equity loan occurs when one or more terms of an existing equity loan is modified, but the note is not satisfied and replaced. A home equity loan and a subsequent modification will be considered a single transaction. The home equity requirements of Section 50(a)(6) will be applied to the original loan and the subsequent modification as a single transaction.
    (A) A modification of an equity loan must be agreed to in writing by the borrower and lender, unless otherwise required by law. An example of a modification that is not required to be in writing is the modification required under the Servicemembers Civil Relief Act, 50 U.S.C. app. §§501-597b.
    (B) The advance of additional funds to a borrower is not permitted by modification of an equity loan.
    (C) A modification of an equity loan may not provide for new terms that would not have been permitted by applicable law at the date of closing of the extension of credit.
    (D) The two percent limitation required by Section 50(a)(6)(E) applies to the original home equity loan and any subsequent modification as a single transaction.
  (3) For purposes of Section 50(a)(6)(M)(iii), a state of emergency includes:
    (A) a national emergency declared by the president of the United States under the National Emergencies Act, 50 U.S.C. §§1601-1651; and
    (B) a state of disaster declared by the governor of Texas under Texas Government Code, Chapter 418.

Source Note: The provisions of this §153.14 adopted to be effective January 8, 2004, 29 TexReg 84; amended to be effective November 13, 2008, 33 TexReg 9074; amended to be effective November 24, 2016, 41 TexReg 9106; amended to be effective March 29, 2018, 43 TexReg 1839; amended to be effective November 26, 2020, 45 TexReg 8307