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 2014 update revises the April 17, 2013 memorandum as follows: 1. It adds the following new cases: Finance Commission of Texas v. Norwood, 418 S.W.3d 566 (Tex. June 21, 2013), supplemented on January 24, 2014; Wells Fargo Bank, N.A. v. Leath, 2014 WL 31352 (Tex. App.-Dallas Jan. 6, 2014), supplemented by 2014 WL 1141248; Patton v. Porterfield, 411 S.W.3d 147 (Tex. App.-Dallas 2013, pet. denied); Sims v. Carrington Mortg.Services, L.L.C., 538 F. App’x 537 (5th Cir.2013). For ease of reference, the name of each case identified above is highlighted in bold typeface (see Section II. below). 2. It makes editorial changes, typographical corrections to existing text and updates citations, where applicable, to the cases summarized in Section II below.

Complete Memorandum