Property tax lenders will have a more difficult time taking advantage of Texas homeowners, thanks to new legislation signed into law this year.
Senate Bill 247 seeks to regulate the property tax lending industry by forbidding the sale, transfer, assignment or release of rights, related to a property-tax lien, to a person who is not licensed by the Consumer Credit Commissioner. If the agent is licensed, he or she must describe in detail each additional fee that might be incurred in the transaction.
The new law is also taking aim at a lender’s solicitation to the general public. They will now be required to include a notice that the tax office could offer plans that are less costly to consumers.
Unlike previous requirements, the bill now requires tax lenders to use judicial foreclosure for all closed loans.