Sherzer v. Homestar Mortgage Services: The Third Circuit Takes Sides in a Circuit Split Over How a Borrower Exercises Rescission Rights Under TILA

Schnader Alert by Stephen J. Shapiro:

The U.S. Court of Appeals for the Third Circuit recently took sides in a split between U.S. Circuit Courts of Appeal over what action borrowers must take to exercise their right to rescind a loan under the Truth in Lending Act. In Sherzer v. Homestar Mortgage Service, the Third Circuit ruled that borrowers need only send lenders valid notice, not file suit, within the time allowed under the statute in order to rescind a loan agreement.

Please click here to read the full Alert.