Homeowners Ask Texas High Court To Cap Equity Principal

Law360, Dallas (November 13, 2013, 8:03 PM EST) -- A putative class of homeowners claiming loans from Carrington Mortgage Services LLC violate the Texas Constitution told the state Supreme Court on Tuesday to adopt a simple, bright-line rule that would prevent the principal of a home equity loan from increasing past 80 percent of a home’s value.

The Fifth Circuit in August certified questions about the state’s constitutional limit on home equity loan principal to the Texas high court, which hasn’t yet set a date for oral arguments. The homeowners say the court should impose...
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