This memorandum will provide an overview of home equity lending embodied in Article XVI, Section 50, of the Texas Constitution and will also discuss some of the issues lenders face. The full text of Section 50, current to date, is attached to this memorandum (for ease of reference, the home equity and HELOC provisions are highlighted in bold typeface). All references to “sections,” “subsections,” and “parts” in this memorandum refer to the various provisions of Section 50, unless otherwise stated. This 2015 update revises the April 11, 2014 memorandum as follows: 1. It adds the following new cases: Boren v. U.S. Nat. Bank Ass’n, 2014 WL 5486100 (S.D. Tex. Oct. 29, 2014); Callan v. Deutsche Bank Trust Co. Americas, 11 F.Supp.3d 761 (S.D. Tex. Mar. 27, 2014); In re Estate of Hardesty, 449 S.W.3d 895 (Tex. App.-Texarkana Nov. 18, 2014); Lynch v. JPMorgan Chase Bank, N.A., 2014 WL 5672652 (E.D. Tex.-Sherman Division Oct. 31, 2014); Mendoza v. Wells Fargo Bank, N.A., 2015 WL 338909 (S.D.Tex. Jan. 23, 2015); Sims v. Carrington Mortg. Services, L.L.C., 440 S.W.3d 10 (Tex. May 16, 2014, rehearing denied Oct. 03, 2014); Sims v. Carrington Mortg. Services, L.L.C., 583 F. App’x 344 (5th Cir. Oct. 22, 2014); Thweatt v. Deutsche Bank Nat. Trust Co., 2014 WL 2538691 (Tex. App.-Houston [1st Dist.] Jun. 05, 2014); Williams v. Wachovia Mortg. Corp., 407 S.W.3d 391 (Tex. App.-Dallas 2013, review denied Feb. 14, 2014); Wood v. HSBC Bank USA, N.A., 439 S.W.3d 585 (Tex.App.-Houston [14th Dist.] Jul. 31, 2014, petition for review filed Oct. 15, 2014). For ease of reference, the name of each case identified above is highlighted in bold typeface (see Section II. below).

Complete Memorandum