No additional collateral. No collateral other than the homestead can secure an equity loan. Equity loans may not be closed until 12 days after an application is received. After closing, the borrower has an additional three days to rescind the loan. Authorized lender .
Equity loans are voluntary.
The Homestead Act is not being repealed, and involuntary liens are not authorized against a homestead for any purpose. All equity loans will be nonrecourse, so homeowners will carry no personal liability beyond the homestead property, unless the loan was obtained through fraud. No home equity loan may be foreclosed upon without a court order. The lender may not demand payment because of a default on another debt. Also, the lender may not require the borrower to apply the proceeds of an equity loan to repay another debt to the lender.