Skip to main content

Supreme Court Rules for Homeowners in TILA Case

Phil Hall
Jan 13, 2015

In its first case of 2015 affecting the mortgage industry, Jesinoski v. Countrywide, U.S. Supreme Court, No. 13-684, the U.S. Supreme Court ruled unanimously in favor of homeowners seeking to rescind their mortgages if their lenders face accusations of running afoul of the Truth in Lending Act (TILA).

The 9-0 vote, which reverses a lower court decision, was a victory for Larry and Cheryle Jesinoki of Eagan, Minn., who were in litigation over a $611,000 loan from 2007 that was originated for them by Countrywide Home Loans Inc., later acquired by Bank of America. TILA enables a homeowner to rescind a mortgage for up to three years after it was made if it is determined that details of the loan were not properly explained by the lender. The Jesinokis filed a rescinding notice at the tail end of their three-year period, and a lawsuit followed when Bank of America disputed the Jesinokis’ action.

Similar cases have resulted in mixed rulings in the lower courts, with some rulings favoring the action taken by the Jesinokis—as affirmed by the Third, Fourth, and Eleventh Circuit Courts—and others determining that homeowners must file a lawsuit to rescind their mortgage rather than merely sending a letter to their lender—as affirmed by the First, Sixth, Eighth, Ninth, and Tenth Circuit Courts.

“The Jesinoskis mailed respondents written notice of their intention to rescind within three years of their loan’s consummation,” wrote Justice Antonin Scalia in the court’s ruling. “Because this is all that a borrower must do in order to exercise his right to rescind under the Act, the court below erred in dismissing the complaint. Accordingly, we reverse the judgment of the Eighth Circuit and remand the case for further proceedings consistent with this opinion.” 

Published
Jan 13, 2015
Mortgage Forbearance Changes Create Challenges for Servicers

65% Of All Plans Would Expire By The End of 2021

Regulation and Compliance
Aug 02, 2021
CFPB Reports Trends In Financial Assistance

The latest developments from this study reveal that most consumers have exited the payment assistance they received at the start of the pandemic.

Analysis and Data
Jul 14, 2021
CFPB Orders GreenSky To Refund $9M In Unauthorized Loans

The consent order requires GreenSky to refund or cancel up to $9 million in loans for the customers harmed by this illegal conduct.

Regulation and Compliance
Jul 13, 2021
CFPB Warns Landlords And Consumer Reporting Agencies To Report Accurate Rental Information

Inaccurate rental or eviction information can unfairly block families and individuals from safe, affordable housing.

Regulation and Compliance
Jul 01, 2021
FHFA Mandates Quarterly Fair Lending Reports

FHFA issued orders for all enterprises to submit quarterly Fair Lending Reports with data and information to improve the FHFA’s capabilities. 

Regulation and Compliance
Jul 01, 2021
FHFA Follows CFPB To Protect Borrowers Once COVID-19 Foreclosure And Eviction Moratoriums End

The Federal Housing Finance Agency made it clear that Fannie Mae and Freddie Mac servicers are not permitted to make first notice or filing for foreclosure that would be prohibited by the CFPB protections for borrowers affected by COVID-19.

Regulation and Compliance
Jun 30, 2021