Property Tax Lending is Pay Day Lending. Notification Requirements Recommended.

“Tax lien lenders are nothing more than payday lenders for homeowners,” said Eric Sandberg Jr., president of the Texas Bankers Association.

As a counter, Propel CEO compares tax lien lending rates to mortgage lending rates. 

What do Banks want to do about it?

• 12-day cooling off period for consumers
• Notice to the mortgage lender, giving the lender the ability to pay off the tax lien

                                                                                                                      Statesman

What did Business & Industry Interim Committee Report recommend?

• 10 day notification period for property owners to notify their mortgage lender before signing a property tax loan

• Require the Office of Consumer Credit Commissioner to collect information “regarding how often mortgage companies pay off the loans, and whether they do so because the borrower has defaulted and the company is trying to protect is collateral. “