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Thursday, September 18, 2014

ABA, Trade Groups File Brief in TILA Rescission Case

ABA and several trade groups filed a friend-of-the-court brief urging the Supreme Court to uphold the appellate court decision in Jesinoski v. Countrywide when it hears the case in November. The matter at issue is what constitutes the rescission of a mortgage by a borrower during the three-year period allowed by the Truth in Lending Act should the creditor fail to make certain disclosures.

The appellate court in Jesinoski ruled that to rescind a mortgage under those conditions, a borrower must file a lawsuit before three years are up, as most other appellate circuits have found. The petitioners are urging the Supreme Court to find that a written notice of intent to rescind a mortgage is sufficient within the three-year window.

ABA and the other groups argued that requiring a lawsuit to rescind balances borrowers’ rights to full disclosure and redress while providing certainty to the mortgage marketplace. The petitioners’ approach, however, would “fundamentally undermine the finality and clarity Congress intended this statute to provide,” the groups explained.

Read the brief.

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