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
'A Long Road To Normal'

Nominated again to lead The Fed, Powell tells Senate committee to expect three rate hikes, but 'if we have to raise interest rates more over time, we will.'

Regulation and Compliance
Jan 11, 2022
CFPB: Complaint Response Worsens At Big 3 Credit Bureaus

Report claims Equifax, Experian, and TransUnion routinely failed to fully respond to consumers with errors.

Regulation and Compliance
Jan 10, 2022
The Fed Names Chairs, Deputy Chairs For 12 Reserve Banks

In recent years, the Federal Reserve System has worked to increase the overall diversity of the Reserve Bank and branch boards of directors and continues to build on those efforts.

Regulation and Compliance
Jan 06, 2022
The Fed: Rate Hike Likely Coming in June

Federal Open Market Committee's December minutes reveal discussion of first hike in federal funds rate in 2Q of 2022, as well as of ending asset purchases by March.

Regulation and Compliance
Jan 05, 2022
AARMR No Protection For Savanah Scares

Conference provides opportunity for regulators to interact, discuss common topics

Regulation and Compliance
Jan 04, 2022
McCargo Sworn In As Ginnie Mae President

Former HUD official becomes the first female to lead the Government National Mortgage Association.

Regulation and Compliance
Jan 04, 2022