HBA-JLV H.B. 3239 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3239
By: Olivo
Financial Institutions
3/26/2001
Introduced



BACKGROUND AND PURPOSE 

Current lending regulations do not provide safeguards for borrowers who are
asked by lenders to sign contracts with blanks to be filled in later by the
lender.  There are concerns that predatory lending practices target persons
who have few resources to fight back with when they are cheated.  People
may also lack the money to seek legal counsel and the knowledge to contact
an appropriate enforcement agency.  House Bill 3239 provides that a home
loan document in which blanks are left to be filled in after it is signed
by the borrower is void. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 3239 amends the Finance Code to provide that a home loan
document in which blanks are left to be filled in after it is signed by the
borrower is void. 

EFFECTIVE DATE

September 1, 2001.