Texas Home Equity Lending - A Brave New World

https://www.mayerbrown.com/en-US/experience/Consumer-Financial-Services/ https://www.mayerbrown.com/en-US/experience/Consumer-Litigation-Class-Actions/ The Texas Supreme Court issued two landmark home equity lending decisions on May 20, 2016. David Tallman, a Consumer Financial Services partner from Mayer Brown’s Houston office, and Debra Bogo-Ernst, co-chair of the Consumer Litigation & Class Actions practice from the firm’s Chicago office, discuss the impact that these decisions will have on lenders, holders and servicers of Texas home equity loans. Topics include: Claims and defenses which owners of homestead property may assert in connection with a violation of Article XVI, Section 50(a)(6) of the Texas Constitution Limitation periods and pleading requirements which apply to such claims and defenses Cures for Section 50(a)(6) violations (and which requirements are curable) The interplay between the home equity lending provisions of the Texas Constitution and UDAAP/UDAP requirements, including the UDAAP implications of the holding that liens that secure a noncompliant home equity loan are void unless redeemed through an effective cure Tips for risk assessment and mitigation