Supreme Court clarifies mortgage cancellation rule WASHINGTON – Jan. 13, 2015 – Under the Truth in Lending Act (TILA), homebuyers have the right to back out of their mortgage for three years if the lender violated TILA rules. However, the method of cancellation was in dispute until the U.S. Supreme Court released todays ruling. Some lower court decisions said it would require a lawsuit, but the Supreme Court justices ruled unanimously that the law only requires a homeowner to deliver a letter to his or her lender. The court case, Larry D. Jesinoski, et al. v. Countrywide Home Loans Inc., et al., involved a Minnesota couple who refinanced their home loan through Countrywide Home Loans, which later became part of Bank of America. They claimed the right to rescind their mortgage because the bank failed to give them some required disclosures, and they notified the bank by letter. According to Supreme Court Justice Antonin Scalia, the TILA laws dont note the method a homeowner must use to rescind a mortgage. He called the current case simple and said a letter is all that a borrower must do in order to exercise his right to rescind.
Posted on: Tue, 13 Jan 2015 22:16:14 +0000
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