If you are a practicing attorney: Are you using Defense by Recoupment under 15 U.S.C. 1640(e) as a strong affirmative defense for your clients?
PLEASE NOTE: the following is not intended as legal advice and is given only for example purposes only. You should consult a licensed attorney in your state to handle your foreclosure defense and offer any legal advice he or she may deem appropriate. The forms provided are for examples only and have not been tailored to any particular legal situation. You should consult a licensed attorney in your area regarding your particular legal situation. This article does not establish any attorney client relationship, and the opinions expressed in this article are those of the author and not intended as legal advice.
Truth in Lending Act (TILA) Mortgage Rescission
I was on the phone yesterday with a loss mitigation rep from Washington Mutual Bank. I was calling to get the specific address to send a “Notice of Rescission” to for WAMU. Every lender/bank/servicer has specific addresses for these types of correspondence. I asked the lady in Loss Mitigation for the “address that I can send a rescission notice to.” At first, she said, “a what?” “A notice to rescind the loan” I said. “Sir, you can’t rescind a loan” she said. I said, “ma’am, please just give me the address I can send an official notice to rescind the loan to.” She says, “why? did you just close on this loan within the last three days because I’m pretty sure you can’t just cancel a loan.” I said, “ma’am you most certainly can, up to three years from the date of closing actually if it’s a refinance loan of a primary residence and there are certain violations of the truth in lending act; but I’m not going to argue with you, just give me right address!” This little back and forth madness just goes to show how even the bank/servicer employees don’t know the law! A legal right to TILA mortgage rescission can extend up to three (3) years out from the date of closing if: