In a highly questionable -- well, wrong IMHO-- decision, the 5th Circuit U.S. Court of Appeals has held that Section 50 has a four-year statute of limitations after closing. Priester v. JP Morgan Chase Bank, N.A., 12-40032, 2013 WL 539048 (5th Cir. Feb. 13, 2013). That means that a lien springs into existence after four years even if the loan is wildly noncompliant. For example, if it's an illegal 2d home equity loan on the same property, it will be valid after four years. If it has a balloon at the end of 30 years, that balloon becomes valid after four years. Etc. etc. I submitted an amicus brief to the 5th Cir. (though somewhat late) that I hope will be accepted. The brief is HERE.

There are already cases involving 2d home equity loans that are invalid and home equity loans that recite all sorts of illegal provisions, like personal recourse against the borrower and non-judicial foreclosure. Under the new 5th Circuit rule, all those clauses can be validated a few years into a 30-year home equity loan. The cure provisions of Section 50 thus become irrelevant four years into a home equity loan. One wonders why the people and the legislature of Texas bothered to put in a cure remedy if it was no good for most of the life of a loan.