Officials said about 10 percent of the state's voters decided that and 13 other proposed constitutional amendments. With nearly all statewide precincts counted, the measure was approved 59.5 percent to 40.5 percent. In Harris County, with nearly all of the precincts counted, the measure passed 59 percent to 41 percent. It's a very smart financial decision for a certain segment of the population that has equity in their homes, has the ability to repay the loans and has a good need for the money. Several lenders who have been gearing up for the possible passage of the amendment plan to accept loan applications beginning today, but they can't legally close the loans until next year, officials said.
Equity is the difference between the market value of a home and the amount owed on it.
Since 1839, when Texas was a republic, the state has severely limited the ability of lenders to foreclose on homesteads. The limits, included in Texas Constitutions since 1845, were slightly loosened to allow foreclosure on loans for home improvements and tax payments, and for settlement of divorces and inheritances. For nearly 20 years, lawmakers had attempted to bring to voters the question of whether to expand home-equity loan options. Only after numerous consumer safeguards were included in the amendment did the proposal win overwhelming legislative approval earlier this year. The amendment forbids lines of credit secured by home equity, a sometimes perilous form of consumer loans allowed in several other states.