In Federal Court News… Ninth Circuit Court of Appeals – Bank of America Countrywide Financial – lower courts reversed
This week, the Ninth Circuit Court of Appeal’s, located in San Francisco California, released one of the most significant legal opinions concerning Home Owners rights in the predatory lending arena.
In Merritt v. Countrywide Financial Corporation, Bank of America, Angelo Mozilo, David Sambol et al, Case No. 09-17678, the Federal Court of Appeal’s established a precedent under the Real Estate Settlement Practices Act (RESPA), Truth in Lending Act (TILA).
Under TILA, a home owner is allowed 3 days to rescind a loan if they are provided with all of the information regarding the loan. If they are not, they have up to 3 years to discover any issues that exist with the loan. According to the pleadings in the case, and the Ninth Circuit opinion, in 2009, David and Salma Merritt was served with their loan documents for the first time since closing the loan in 2006. The documents had…
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