Law Office of Simmons & Purdy

 

2425 Porter Street, Suite 10

Soquel, CA 95073

Phone: (831) 464-6884

Fax: (831) 464-6886

info@pamelaw.com

Law Office of Simmons & Purdy
2425 Porter Street
Suite 10
Soquel, CA 95073

ph: 831-464-6884
fax: 831-464-6886

info@pamelaw.com

PLEASE "LIKE" US ON:Facebook

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  • The Federal Truth in Lending Act: What You Don't Know Can Hurt YouClick to open the The Federal Truth in Lending Act: What You Don't Know Can Hurt You menu
    • I. TILA's History and Predatory Lending
    • II. How to Find the Law
    • III. What Every Real Estate Attorney Should Know About TILA
    • IV. The Recission Process: The Law and Reality
    • V. Conclusion
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The Federal Truth in Lending Act:

What You Don't Know Can Hurt You


by Pamela D. Simmons, Esq.

 

©Copyright 2005 Law Office of Simmons and Purdy. All rights reserved

 

Introduction

Ten years ago, I represented the borrower in a case that stemmed from a title company's failure to secure a loan on all of the borrower's land. (The title company had listed only one of several parcels of land and the lender was unable to non-judicially foreclose on the property as a result.) The complaint had already been filed, and listed among the many causes of action was one entitled "Violation of Reg Z." One day an attorney for one of the defendants asked me: "What is this Reg Z? I've never even heard of it." So began my love affair with the Federal Truth in Lending Act. 

Most attorneys know the Federal Truth in Lending Act (TILA) as the group of laws requiring certain disclosures about the cost of borrowing money. You have seen the disclosures every time you have received a new credit card. Many readers may also be aware that consumers who are borrowing against their homes have a three-day right to cancel the transaction--another feature of TILA. However, few real estate attorneys know that TILA's right to cancel can last for as long as three years after the loan is made. Moreover, under certain circumstances, TILA can govern individual lenders making a first loan secured by residential property. And even fewer practitioners know that the cost of rescission to the lender is all of the interest, fees, costs, and any other charges not directly for the benefit of the borrower. I have personally seen the loss to the lender exceed $280,000. In this article I will discuss the history of TILA, describe rescission (its most important provision), and offer some tips on avoiding its pitfalls and attorney malpractice. 

 

I. TILA's History and Predatory Lending

II. How to Find the Law

III. What Every Real Estate Attorney Should Know About TILA

IV. The Recission Process: The Law and Reality

V. Conclusion

 

 

 



The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.

 

 

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Law Office of Simmons & Purdy

All rights reserved.

 

 

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Law Office of Simmons & Purdy
2425 Porter Street
Suite 10
Soquel, CA 95073

ph: 831-464-6884
fax: 831-464-6886

info@pamelaw.com

PLEASE "LIKE" US ON:Facebook