The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Steve Murray on the importance of protecting property rights

In this episode, Steve Murray, RealTrends advisor and industry stalwart, discusses some of the issues facing private property rights, including how a case in Germany could potentially affect U.S. legislation.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Mortgage

Supreme Court eases notification rules for mortgage rescissions

Change makes it easier for borrowers to walk away from underwater homes

Borrowers need only notify creditors in writing of their intention to rescind their mortgages within three years, the U.S. Supreme Court ruled Tuesday, which could make it easier for underwater owners to walk away from their mortgages.

The ruling by the Supreme Court on Tuesday overturned a September 2013 ruling in the 8th Circuit that held that Larry and Cheryle Jesinoski of Eagan, Minn., were required to sue Countrywide Home Loans Inc. to have their mortgage financing rescinded within three years of the transaction closing under the Truth In Lending Act.

According to Law360, the Jesinoskis argued that TILA only requires borrowers to give notice in writing within those three years.

The entire high court agreed with the Jesinoskis.

"The language leaves no doubt that rescission is effected when the borrower notifies the creditor of his intention to rescind. It follows that, so long as the borrower notifies within three years after the transaction is consummated, his rescission is timely. The statute does not also require him to sue within three years," Justice Antonin Scalia wrote for the court in a unanimous opinion.

This ruling means that TILA does not in fact require borrowers to file a lawsuit to rescind a mortgage within three years of the home loan's issuance.

Rather, all they have to do is file a notice that they intend to walk away from the loan.

According to Law360, the law also provides a more expanded rescission right in situations where borrowers do not receive mandated disclosures. There, the law provides three years from the closing date to provide such notice but with proof that the documents were not provided.

“The Jesinoskis mailed respondents written notice of their intention to rescind within three years of their loan’s consummation. Because this is all that a borrower must do in order to exercise his right to rescind under the Act, the court below erred in dismissing the complaint," Justice Scalia wrote.
 

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