Christopher H. Moore Testifies Regarding House Bill 207

House Bill 207

Moore Ganske Murr Sessions pllc attorney, Christopher H. Moore, recently testified before the Texas House of Representatives Business & Industry Committee in support of House Bill 207.  The bill deals with a technical issue with Texas rural homestead law (we know, exciting stuff!). A feature of Texas rural homestead law can sometimes make it difficult for rural and suburban borrowers to put up rural property as collateral for cash out loans.  Over Chris’s 40 years of representing banks in lending transactions he has had to deal with this issue many times. The result was often a disappointed and frustrated bank customer.

Chris worked with Representative Andrew Murr’s office on a legislative solution. Chris put together the language for the bill with input from the Texas Bankers Association, Hou, and Texas Land Title Association. The bill amends the Texas Property Code to provide a procedure for borrowers to convey rural property to an entity such as a limited liability company in a way that does not run afoul of homestead laws. The bill provides expanded borrowing opportunities for rural and suburban borrowers.

In his testimony, Chris discussed real world examples of the homestead issue, how the bill could help, and answered questions from committee members. Last legislative session, a similar version of House Bill 206 passed the Texas House of Representatives but died in the Texas Senate without a hearing. Hopefully, this time around the bill will be approved by the Senate.