Finance
Commission Studies
Preemption of Financial Services Study
December 2006
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.
Non-Real Estate Consumer Lending Study
April 2005
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:
- How the volume of lending changed over time?
- How lending institutions were geographically
distributed throughout the state?
- What were the characteristics of the loans
consumers received?
- Were unlicensed businesses lending money in
Texas?
Mortgage Lending Study
April 2003
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.
Research on Agricultural Lending
in the State of Texas
December 2002
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
Analysis of Small Business Lending in Texas
June 2002
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
Consumer Lending in Texas
September 2000
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
Home Equity Lending in Texas
December 1999
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.
The Consumer Depository and Cash Services Study
December 1998
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. |
