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
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