Overview
The Homeowners' Rights Campaign is an effort to get legislation passed to solve three major problems.
1. The Texas Residential Construction Commission (TRCC)
The TRCC was created in 2003, ostensibly to regulate the building industry and facilitate dispute resolution between homeowners and builders. The TRCC is instead dominated by the very industry it is supposed to regulate. Consumers have no real voice on the commission, where nearly all the seats are held by builders or people with close ties to the building industry.
Far from resolving disputes, the TRCC seems designed mainly to prevent homeowners with real grievances from taking builders to court. Under current law, before taking legal action, a homeowner must navigate a confusing maze of bureaucratic red tape in a 'dispute resolution' process. Because the TRCC contains no meaningful voice for consumers, the odds are stacked against homeowners from the beginning of the process. Adding insult to injury, homeowners are expected to pay a hefty fee before the process can even begin.
Even on those rare occasions when the TRCC finds in favor of the homeowner, it has lacked any enforcement power to order builders to make necessary repairs. According to a report put out by the Texas Comptroller's office, builders ignored TRCC instructions to make repairs to homes 86% of the time, and suffered absolutely no penalty for their lack of action. This is one area where progress was hopefully made during this past legislative session, though proof of progress remains to be seen.
2. Homeowners Insurance
Texas has the highest home insurance rates of any state in the Nation. In fact, according to the National Association of Insurance Commissioners, Texans pay about twice the national average for homeowners' insurance.
Insurance companies give various reasons for the rate hikes, but they don't add up. Hurricane fears are expressed, yet rates remain high even after quiet hurricane seasons. Mold in houses is presented as a reason for high rates, yet insurance companies then argue in court that they are not required to cover damage caused by mold.
3. Predatory Mortgage Lending
Many of the most vulnerable Texans, including seniors who live on fixed incomes, are finding themselves increasingly victimized by predatory mortgage lending. Unprincipled mortgage loan brokers take advantage of a person's momentary need for large amounts of money and sign them up for mortgage loans using the homeowner's house as equity. These loans include numerous deceptive practices which quickly inflate the loan's interest rate beyond the ability of the borrower's ability to pay.
Predatory mortgage lending ruins the credit of thousands of Texans, forcing many to foreclose on their homes. The practice also sucks millions out of the Texas economy. This critical issue must be addressed by the legislature.
