Banking Regulation, Not Real Estate Reregulation, Saved Texas

Texas' strict banking regulation may be partially responsible for its economic health.

Many planning commentators have suggested that Texas' relatively lax land-use planning system has protected the state from the foreclosure epidemic.

But another cause may be Texas' strict banking regulation: Texas restricts home equity loans to a greater extent than most states. In Texas, "the total amount of debt on a home cannot exceed 80 percent of its appraised value, and any proceeds cannot be used to pay off other debts."

Thanks to Michael Lewyn

Full Story: The Lone Star Secret

Comments

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $245
Planetizen Courses image ad

Planetizen Courses

Advance your career with subscription-based online courses tailored to the urban planning professional.
Starting at $16.95 a month
Book cover of Where Things Are from Near to Far

Where Things Are From Near to Far

This engaging children's book about planning illustrates that "every building has its place."
$19.95
City Plate table setting

New Arrival! City Plates

City downtown cores printed on gorgeous decorative collectible porcelain plates.
$50.00