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Recent News
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IBAT WEIGHS IN ON ACORN CASE
April 23, 2007 - On January 31, 2007, the Third Court of Appeals heard oral argument 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.
IBAT weighed in on these issues with a "friend of the court" brief that explains the business and regulatory framework for home equity lending. In addition, we responded to the questions asked during oral argument. Click HERE for that brief as filed.
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Comments & Questions
If you would like to comment or have questions about this information,
please call Darlene Revers in our membership department at (800) 749-4228
or email drevers@ibat.org.
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