An equity loan may not be closed before the 12th day after the lender provides the owner with the consumer disclosure on a separate instrument.
- (1) If a lender mails the consumer disclosure to the owner, the lender shall allow a reasonable period of time for delivery. A period of three calendar days, not including Sundays and federal legal public holidays, constitutes a rebuttable presumption for sufficient mailing and delivery.
- (2) Certain provisions of the consumer disclosure do not contain the exact identical language concerning requirements of the equity loan that have been used to create the substantive requirements of the loan. The consumer notice is only a summary of the owner's rights, which are governed by the substantive terms of the constitution. The substantive requirements prevail regarding a lender's responsibilities in an equity loan transaction. A lender may supplement the consumer disclosure to clarify any discrepancies or inconsistencies.
- (3) A lender may rely on an established system of verifiable procedures to evidence compliance with this section.
Source Note:The provisions of this §153.51 adopted to be effective January 8, 2004, 29 TexReg 84.