Voters in Texas have approved a constitutional amendment that allows lenders to offer home equity lines of credit for the first time in the state's history.But even more important than the HELOC language is a cure provision for home equity lenders, according to Larry Temple, general counsel for the Texas Mortgage Bankers Association. This allows lenders to avoid severe penalties by correcting minor mistakes. It will, said Mr. Temple, encourage more lenders to offer home equity loans, and will also eliminate the "Texas premium" that borrowers paid as a result of the added risk to lenders. The decision will become effective in 15 to 30 days, when Gov. Rick Perry certifies it as official.
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