In 2003, an amendment to the Texas Constitution authorized the Legislature to delegate to a state agency the power to interpret certain provisions of the Constitution governing home equity lending. Six homeowners subsequently brought an action challenging the Finance Commission and Credit Union Commission's interpretations. The Supreme Court held that the interpretations were subject to judicial review and the influence of those interpretations on whether even to apply for a home equity loan was injury sufficient to give the homeowners standing. With respect to the three interpretations at issue, the Supreme Court found the Commission's interpretations of the fee cap and the use of mail and powers of attorney in closing transactions were invalid but upheld its interpretation of Sec. 50(g) with regards to notice. The court of appeals' judgment is affirmed in part and reversed and part, and judgment is rendered.
Finance Commission of Texas v. Norwood
Tx. Sup. Ct.
July 1, 2013