The secret to Texas’ success
2nd April 2010
Texas has strict rules on home-equity lending, relative to other states, and this has helped to prevent ratios of loan size to home value from rising as high as they have elsewhere. This is certainly worth thinking about in considering potential changes in the regulatory environment. A word of caution, however—it’s very easy to underplay the importance of both the relative strength of the Texas economy and the advantage of not having a significant housing bubble.
A lot of it’s just being a red state.