Refi Principal Cap Could 'Wreak Havoc,' Texas Justices Told

Law360, Dallas (December 4, 2013, 4:13 PM EST) -- A mortgage servicing company on Wednesday told the Texas Supreme Court that it could “wreak havoc” on the banking and residential lending industry if the justices deem unconstitutional home equity refinancing agreements that capitalize past-due interest in a putative class action. 

Carrington Mortgage Services LLC, defending claims from homeowners Frankie and Patsy Sims that a home equity loan modification they signed violates the state constitution’s 80 percent limit on the ratio of loan principal to home value, argued if the court adopts the Simses’ definition of...
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