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Texas Supreme Court Hears Argument Over Scope of Home‑Equity Forfeiture Remedy
Summary
At oral argument in Stahb v. Beebe, BBVA, lawyers and justices debated whether the forfeiture remedy in Texas Constitution §50(a) applies to minor post‑origination breaches (like paperless‑statement errors) or only to failures tied to 25 constitutionally enumerated terms and curable harms.
The Supreme Court of Texas heard oral argument Wednesday in Stahb v. Beebe, BBVA over whether the forfeiture remedy in Texas Constitution §50(a) can be used for minor post‑origination breaches of home‑equity loan contracts.
Speaker 1 (Justice, unnamed) opened by identifying the case and pressing counsel on a hypothetical in which a borrower who opted for paperless statements nonetheless received paper mailings. "You're telling me there's forfeiture in that scenario if that's part of the agreement?" the Justice asked, pressing whether the forfeiture remedy was intended for such minor infractions.
Speaker 2 (Counsel, unnamed) urged the Court to read §50(a) in light of its purpose: to permit home equity lending in Texas while guarding against forced sale of…
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