Whether the Truth in Lending Act entitles homeowners to rescind their mortgage commitment by notifying the lender in writing within the period specified by the statute, or whether the homeowner must file a lawsuit to make the rescission effective.

The Truth in Lending Act was designed to protect homeowners by allowing them to rescind their mortgage commitment by written notice to the lender so long as they do so within the statutorily specified period.  Nothing in the language of the statute or implementing regulations that have been in force for four decades supports the lender’s argument in this case that a lawsuit is necessary in order to rescind. Joining with other advocacy groups, the ACLU’s amicus brief points out, in addition, that further restricting a homeowner’s opportunity to rescind will increase foreclosures and have a particularly devastating effect on communities of color.

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