Who is a Mortgage Broker? Just Ask the Fed.

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.