Lawsuit Not Required to Rescind Loan Under TILA

Joy Harmon Sperling, Clara Son and Michael Fitzpatrick wrote a bylined article, "Lawsuit Not Required to Rescind Loan Under TILA," for the New Jersey Law Journal. The article explains the significance of the precedent-setting decision in Jesinoski v. Countrywide Home Loans. On January 13, the Supreme Court of the United States ruled that borrowers only need to provide their lenders with a written notification in order to rescind their loan under the Truth in Lending Act (TILA), rather than actually commencing a lawsuit seeking rescission. The decision could have a significant impact on residential mortgage lenders, as it provides borrowers an easy avenue to rescind a loan if, in particular, the borrowers are in default and facing foreclosure.

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