U.S. Justices Agree to Hear Homeowner Case Against Bank.
Source: nyt/reuters
The U.S. Supreme Court on Monday agreed to decide what process struggling homeowners need to follow if they want to back out of mortgages issued when lenders fail to adhere to a federal disclosure law.
The court will weigh whether homeowners need to write a letter to their lender or file a lawsuit in order to benefit from a provision of the federal law, known as the Truth in Lending Act. The law allows consumers to rescind mortgages for up to three years after the agreement was made if the lender does not notify them of various details about the loan, including finance charges and rate of interest.
The provision is typically used by homeowners who are struggling to pay their mortgages. Lawyers for consumers say mortgage companies routinely violated the law in the years prior to the 2008 financial crisis.
Appeals courts are split over what homeowners have to do.
The court agreed to hear an appeal filed by Larry and Cheryle Jesinoski over the $611,000 loan they obtained from Countrywide Home Loans Inc. in 2007. Countrywide is now part of Bank of America Corp.
Read more: http://www.nytimes.com/reuters/2014/04/28/business/28reuters-usa-court-loans.html?hp
pipoman
(16,038 posts)In 2007....If they loaned anyone in the secondary market $600k they should shoulder much responsibility when it defaults. ..
mountain grammy
(26,622 posts)Always looking for new ways to hurt the 99%.
Jefferson23
(30,099 posts)Tempest
(14,591 posts)For homeowners to use the act.
dixiegrrrrl
(60,010 posts)Somewhere in that 3 year period, payments are being made, one assumes.
When you go to the closing of the mortgage, all the terms are on the paperwork you sign, right?
That's the way I bought houses, even this last one from Countrywide.
It's what happens to the mortgage paperwork AFTER that which is the problem, esp. Countrywide mortgages.