Garth Cooper v. Countrywide Home Loans, Inc., et al.

The Truth in Lending Act (TILA), 15 U.S.C. 1601 et seq., gives borrowers the right to rescind certain transactions "by notifying the creditor" 15 U.S.C. 1635(a). TILA provides, however, that "[a]n obligor's right of rescission shall expire three years after the date of consummation of the transaction or upon the sale of the property, whichever occurs first." 15 U.S.C. 1635(f. The question presented is as follows: Whether the foreclosure defense suit was time barred because it was commenced more than three years after the relevant closing transaction was consummated, even though the borrower provided the creditor written notice of their decision to rescind the transaction within the specified three-year period. Whether the present property in question consist of a "residential mortgage transaction" as defined in 15 U.S.C. §1602 (x), despite the borrower's traditional credit mortgage loan which did not include mortgage refinancing with the original creditor, money securities, land, and was not an installment contract where the buyer pays the sales price to the seller in installments over time. Whether Nondisclosure of appropriate H8 forms under the Truth in Lending Act is an affirmative defense which allows petitioner to further exercise rescission right in a foreclosure action pursuant 12 CFR 226.23(h)(1)(ii) Special Rules for Foreclosures.