Texas League Campaigns for Passage of Home Equity Reform Amendment

FARMERS BRANCH, Texas – Vote “yes” on proposition 16. That’s the message behind a new consumer awareness campaign launched by Texas Credit Union League. Proposition 16 is the constitutional amendment that Texans will vote on Sept. 13 that would reform home equity lending in Texas. The League is urging credit unions to use campaign materials to encourage their members to get out and vote. While the League calls proposition 16 “consumer-friendly” and expects it to pass, constitutional amendments typically do not draw large voter turnouts. In addition, home equity reform has encountered resistance from real estate organizations across the state. Specifically, passage of the constitutional amendment would give Texans the ability to: enjoy home equity lines of credit, make home equity loan payments more frequently than monthly; and refinance a home equity loan as a reverse mortgage. Campaign materials, which include statement inserts, posters in two sizes, wallet cards, counter handouts and metal buttons, were produced by the Texas Conference for Home Owners Rights, of which Texas Credit Union League is a member, and are being distributed through the League’s affiliate, CU Marketing Resources. Copy on the materials tells consumers, “Texas is the only state that doesn’t let you use home equity in your home as you think best. When you vote YES on Proposition 16, you’re voting to improve home equity borrowing in Texas. It’s your home. It’s your money. It’s your right.” Early voting begins Aug. 27, so the League pushed to have inserts available for July statements. “Considering the short lead time, I think we’ve done very well,” said Steve Stovall, marketing manager at CU Marketing Resources. “We’ve sold more than one million statement inserts in a week.” Credit unions will be able to include the inserts in August statements, as well. -