The United States Court of Appeals for the Second Circuit recently affirmed a magistrate judge’s decision in the District Court for the Eastern District of New York to dismiss a complaint brought under TILA and HOEPA. The complaint sought rescission of two loans secured by a lien on a co-operative apartment on the grounds that certain required disclosures were not made by the lender. Adopting the Federal Reserve’s definition of “mortgage broker” the Second Circuit affirmed the district court’s finding that the appellant borrower failed to establish that the subject loans were procured by a mortgage broker.
Author: Dan Goldberger
Third Circuit: The Repossession of Your Car as Collateral on a Usurious Loan is Not an FDCPA Violation
The U.S. Court of Appeals for the Third Circuit recently held that a repossession company did not violate the Fair Debt Collection Practices Act (“FDCPA”) when it repossessed the defaulting debtor’s car, even though the loan may have been usurious.
The Eighth Circuit’s recent decision in Beukes suggests two key take-away lessons regarding a lender’s options if the lender disputes the borrower’s right to rescind.