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Huge Truth in Lending Victory Thanks to Amicus Brief

Huge Truth in Lending Victory Thanks to Amicus Brief

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Published by Catherine Ibarra
Since the inception of the housing crises Courts have been largely refusing to uphold the borrowers right to cancel under TILA, but this is changing thanks to the Consumer Financial Protection Amicus Program
Since the inception of the housing crises Courts have been largely refusing to uphold the borrowers right to cancel under TILA, but this is changing thanks to the Consumer Financial Protection Amicus Program

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Categories:Types, Business/Law
Published by: Catherine Ibarra on May 11, 2013
Copyright:Attribution Non-commercial

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12/25/2013

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HUGE TRUTH IN LENDING VICTORY THANKS TO AMICUS BRIEFOne of American victims of mortgage fraud abuse biggest weapons to fight back againstpredatory lending is the consumers’ right to cancel the mortgage contract if the lender didn’tfollow the rules. The borrowers right to cancel (rescind)The purpose of the Truth in Lending Act as enacted by the House Of Congress was to createspecific non-judicial remedies for consumers to ensure meaningful disclosure of credit terms toprotect the consumer against unfair lending practices. The Federal Reserve Board’s Official Staff Commentary on Regulation Z (12 C.F.R. 226.36, Supplement I).(see Ford Motor Credit v.Milhollin, 444 U.S. 555, 565 (1980) (“Unless demonstrably irrational, Federal Reserve Board staff opinions construing the Act or Regulation should be dispositive”).The Federal Truth In Lending Act’s pertaining Regulation Z and is interpreted by official staff commentaries, was issued by theBoard of Governors of the Federal Reserve System to implement the federal Truth in Lending Act. In 1968, Congress enacted TILA (15 USC §§1601-1693r). Section 105 of TILA requires theFederal Reserve Board to promulgate implementing regulations, which are collectively known asRegulation Z (12 CFR pt 226). The normal statute of limitations on the consumers’ extended rightis three years but is unlimited as a defense to foreclosure. (see Beach v. Ocwen, 523 U.S. 410(1998); (also see 15 USC §1635(f); Reg Z §§226.15(a)(3), 226.23(a)(3).) and Regulation Z§226.2(a)(11))Unfortunately since the 2008 housing crises a massive majority of our Federal District Courtshave set unfavorable precedents (final decisions) that cripple the borrowers ability enforce their rights under this powerful federal law.This picture is rapidly changing, largely due to reformation and increase in power of the newConsumer Financial Protection Bureau who now files amicus, or friend-of-the-court, briefs incourt cases concerning the federal consumer protection laws ( like the Federal Truth in Lending Act that uphold the borrowers’ rights to legal and ethical treatment by banks. These amicus briefsprovide victims of mortgage lending fraud with powerful pro-borrower opinions to influence thecourt on significant mortgage fraud abuse issues for the purpose of ensuring that consumer protection statutes and regulations are correctly and correctly interpreted and enforced by our federal courts.Largely thanks to a supporting amicus brief filed by the consumer financial protection bureau apowerful new precedent upholding the borrowers right to cancel a violating mortgage by notifyingthe lender in writing was upheld on February 5, 2013 when the Third Circuit Court of Appeals joined the Fourth Circuit in ruling that a lawsuit seeking rescission of a violating mortgage loanfiled more than there years after loan consummation is timely as long as the borrower sent awritten notice of rescission within the three-year period.In its decision issued on February 5, 2013 in Sherzer v. Homestar Mortgage Services, the ThirdCircuit rejected the banks’ argument that the borrowers’ lawsuit was untimely because it was notfiled within three years of the loan closing date. Reversing the district trial court’s dismissal of the

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