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APPEALS COURT HEARS ACORN CASE
February 2, 2007 - The Third Court of Appeals heard oral argument Wednesday in the ACORN attack on the Finance Commission and Credit Union Commission interpretations of home equity. The courtroom was packed with interested agency staff, banking attorneys and trade association reps (including Neeley and Burkett for IBAT).
Most of the arguments and questions from the justices involved whether or not an origination fee (which is interest under Texas usury law) is "interest" rather than a fee subject to the cap. In addition, the justices heard arguments on whether convenience checks can be used for HELOCs, whether oral applications start the 12 day cooling off period, which documents must be copied at closing, and permissibility of using a power of attorney to close.
Now that we know the judges' hot buttons, IBAT is preparing to weigh in with a "friend of the court" brief.
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