Full Report (pdf)
Senate Bill 762, of the 82nd Legislature, Regular Session, 2011, mandated that the Finance Commission of Texas (Finance Commission) study the fees, costs, interest, and other expenses charged to property owners by property tax lenders in conjunction with the transfer of property tax liens and the payoff of loans secured by property tax liens. The Finance Commission has collected and analyzed current and historical data in an effort to provide a clear picture of the costs of property tax loans.
The report provides an overview of the property tax lending industry in Texas and discusses the findings and methodology of the study of the fees, costs, and charges to borrowers associated with property tax loans.
The Finance Commission and the Credit Union Commission prepared a joint report, or study, that was submitted to the Texas Legislature in December of 2006 regarding state laws “related to financial institutions” that are or may be federally preempted.
Active industry and consumer participation in the Preemption Study was considered an essential component to ensure that useful information was provided to the Legislature.
The report describes non-real estate consumer lending and attempts to ascertain the characteristics and types of credit available in Texas. Specifically, the research analyzed five types of loans: consumer installment, signature, payday export, payday state rate, and pawn. The report also addresses the following questions:
The report describes home purchase and refinancing trends in Texas and analyzes the loan approval and denial patterns within particular demographics. Based on Home Mortgage Disclosure Act (HMDA) data that is distributed by HUD, the report provides some interesting insights into the subprime mortgage market and compares Texas trends to those of other states.
The fifth phase of the Finance Commission's
studies into the availability, quality, and prices of financial
services, and the practices of business entities providing these
services, focuses on agricultural business lending; specifically
“first handler” producers. The study was conducted by Analytica,
Inc., Houston, Texas, and employs four primary methods to accomplish
the project’s objectives. First, historical data on agricultural
production from 1910 to 2000 was obtained and reviewed. Second,
information on agricultural lending from District 11 (includes Texas)
of the Federal Reserve Bank from 1986 to 2002 was reviewed and graphed.
Third, in-depth interviews with eight experts in agricultural production
and lending were conducted. And fourth, 400 farmers and ranchers
from across the state were surveyed about their lending experiences.
This comprehensive project – Research on Agricultural Lending in the State of Texas - is unique in that it provides an overview of historical trends along with current perceptions and experiences of industry professionals and participants.
The importance of agricultural businesses to the state’s economy remains significant, and this study addresses the conditions, opinions, and experiences of agricultural producers operating in this state. The overwhelming consensus is that credit facilities are sufficiently available to almost all financially responsible agricultural producers. In conjunction, state and federal government support, subsidies, and loan programs are essential to the future viability of agricultural producers.
The report – Research on Agricultural Lending in the State of Texas - is provided in Portable Document Format (pdf) for use with Adobe Acrobat Reader. To view or print the study, Acrobat Reader is required. Download a free version at http://www.adobe.com/products/acrobat/readstep.html
The fourth phase of the Finance Commission's studies into the availability, quality, and prices of financial services, and the practices of business entities providing these services, focuses on non-agricultural small business lending. The study was conducted by the University of Texas at El Paso - Institute for Policy and Economic Development and consists of a comprehensive mail survey that generated 1,567 responses from businesses with less than 100 employees in our state. The primary objectives of the study are to discern the nature and characteristics of non-agricultural small business lending in Texas, including who is and who is not receiving credit, and who is providing credit. Additionally, the study is to identify the types of small business credit that are available, at what prices they are available, whether competitive market pressures influencing this area of lending, and if legitimate small business lending needs are being met.
Based on the scope of the study,
three general conclusions resulted: (1) access to lending opportunities
is primarily through traditional banking institutions; however,
many small business are turning to other sources to obtain loans;
(2) access to lending is broadly available even among small business
that exhibit the most extreme set of conditions that work against
loan approval; and (3) within sub-units of the state there exist
varying patterns and conditions that lead to differences in how
small business lending is conducted.
The Analysis of Small Business Lending in Texas is provided in Portable Document Format (pdf) for use with Adobe Acrobat Reader. To view or print the study, Acrobat Reader is required. Download a free version at http://www.adobe.com/products/acrobat/readstep.html
The third phase of the series of Finance Commission studies centers around Consumer lending in Texas. A telephone survey of 1,501 Texas households was conducted by Analytica, Inc., a Houston-based marketing and research firm. The goal of the research was to collect data that would reflect consumer knowledge and perceptions involving the availability, quality, and prices of loans or other credit products.
The survey concluded that consumers feel credit is widely available. Consumers should be encouraged to comparison shop for credit and pay more attention to interest rates. Also, the vast majority of consumers did not experience any problems whatsoever during the lending process. Very few consumers had problems with their credit reports, but those that did had problems trying to resolve them.
The Consumer Lending in Texas study is provided in Portable Document Format (pdf) for use with Adobe Acrobat Reader. To view or print the study, Acrobat Reader is required. Download a free version at http://www.adobe.com/products/acrobat/readstep.html
The second phase of the series of Finance Commission studies focuses on home equity lending, which was authorized in Texas in January 1998 (Tex. Const., Art. XVI, Section 50(s)). The study was performed by Analytica, Inc., a Houston-based marketing research firm. The report presents findings based upon a survey of 1200 Texas homeowners and 91 home equity lenders.
The survey estimates that 10.4% of Texas homeowners have applied for a home equity loan and 8.9% of Texas homeowners have actually obtained a home equity loan. The overwhelming uses for home equity loans were to pay off credit card or other debt or for home improvement purposes. The report identifies several ways in which homeowners and lenders believe that home equity lending could be improved.
Fin. Code 11.305 - The first phase of research, conducted in 1998, focused on consumer depository and cash services provided to individuals throughout the State of Texas.
The study concludes that education of consumers is needed, because education, as a strong determinant of income potential, could increase the number of Texans who would be able to avail themselves of the widest array of financial services. Specifically, personal financial management education would be of assistance in giving consumers better knowledge of their own financial situation, and the confidence to seek the most cost-effective services to meet their needs.