In Jordan v. Paul Financial, LLC, NO. C 07-04496 SI (N.D.Cal., July 01, 2009) the plaintiff sued for rescission under TILA contending that the creditor’s alleged failure to adequately disclose the risk of negative amortization is a material disclosure for purposes of the extended three-year statute of limitations for rescission.…
Read More »In Anthony v. Anthony, NO. 08-21520-CIV (S.D.Fla., July 27, 2009) the evidence that the loan documents are forgeries was undisputed. It was also undisputed that the Plaintiff was not present at a closing and did not execute the forged documents. The question the court had to resolve then was whether…
Read More »The Plaintiff in Burgueno v. GMAC Bank, NO. CV-08-1642-PHX-ROS (D.Ariz., July 23, 2009) alleged that he did not receive a proper Notice of Right to Rescind. As is customary at closing the Plaintiff signed an acknowledgment that he had received two copies of the notice. However, he also asserted there…
Read More »In Melfi v. WMC Mortgage Corp., No. 09-1066, (1st Cir., June 11, 2009) the U.S. Court of Appeals for the First Circuit held that a technical violation of TILA and Regulation Z did not trigger the longer three-year rescission period becuase the documents gave reasonable notice to the borrower that…
Read More »The Court of Appeals for the Seventh Circuit reversed a district court’s finding that a lender’s loan fraud recovery action was barred by the _Rooker-Feldman_ doctrine and claim preclusion due to prior credit bids entered in the foreclosures of the loans. In Freedom Mortgage Corp. v. Burnham Mortgage, Inc., No.…
Read More »In a question that has vexed litigants and the courts for years a district court in New Jersey, in a thinly-reasoned opinion, held that assignee is liable for the assignor’s RESPA violations. In Carmen v. Metrocities Mortg. Corp., Civ. No. 08-2729 (D.N.J., May 18, 2009), the court found that an…
Read More »The wife of the owner of a development company who was sued in Champion Bank v. Regional Development, LLC, 4:08 CV 1807 CDP (May 13, 2009 E.D.Mo.) said she was asked (forced?) by the company’s lender to guarantee a note issued for company in violation of the Equal Credit Opportunity…
Read More »A federal judge in California has backed a loan servicer in a dispute over a loan cancellation claim brought under the Truth in Lending Act (TILA). In Aurora Loan Services LLC v. Britton, 2:08-cv-01535-GEB-KJM, (E.D. Calif., May 21, 2009), the Servicer asked the court to modify the normal rescission procedures…
Read More »In a question that has vexed litigants and the courts for years a district court in New Jersey, in a thinly-reasoned opinion, held that assignee is liable for the assignor’s RESPA violations. In Carmen v. Metrocities Mortg. Corp., Civ. No. 08-2729 (D.N.J., May 18, 2009), the court found that an…
Read More »The wife of the owner of a development company who was sued in Champion Bank v. Regional Development, LLC, 4:08 CV 1807 CDP (May 13, 2009 E.D.Mo.) said she was asked (forced?) by the company’s lender to guarantee a note issued for company in violation of the Equal Credit Opportunity…
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