What a recent rescission case win means for other servicers
What a recent rescission case win means for other servicers
Abstract
The U.S. Court of Appeals for the Fourth Circuit overturned a West Virginia judge's decision against Reverse Mortgage Solutions in a Truth in Lending Act rescission case. A jury ruled in favor of RMS, arguing it didn't owe Teresa Lavis damages under TILA. RMS failed to provide required disclosures to Lavis when a reverse mortgage loan closed in 2013, putting the three-year timeline. In 2016, Lavis sent a notice of rescission. RMS did not unwind. Lavis didn't unwind the transaction to RMS. but the lender did not respond or otherwise respond. The case was later moved to the federal system for trial.
