CONSUMER ADVOCATES


A SUBSTANTIVE EDUCATIONAL GUIDE FOR PROFESSIONAL CONSULTANTS & COMMUNITY ADVOCATES

We provide Forensic Truth in Lending Act (TILA) Audits, continuing professional education, resolution services and remedies for attorneys & consumers. We also teach consumer advocates to do forensic audits of mortgage loans. Our TILA Audits determine substantive rights to rescind or cancel a mortgage loan transaction.

Warning: TILA Audits that use standardized check-off lists without a disclosed mathematical determination of the TILA Disclosure Statement and amounts are NOT Forensic Audits. A check-off list TILA Audit describing violations as "Serious," "Moderate," or "Minor" is incompetent and useless. A Forensic TILA Audit must provide accurate TILA; Regulation Z citations, case law precendent, as well as computation of all fees allocated in the TILA Disclosure Statement or the Audit will NOT withstand scrutiny by legal authorities. Do not be fooled by imitations.

Our primaty academic resources teach advocates the following objectives:
  • STOP FORECLOSURES
  • Truth in Lending is a strict liability act and mandates: DISCLOSURE, DISCLOSURE, DISCLOSURE
  • STOP PREDATORY, OVER-REACHING, OPPRESIVE & ABUSIVE LENDING PRACTICES
  • R.E.S.P.A. an effective tool against incompetent and recalcitrant Servicers
  • Understand the difference between open-end credit and closed-end credit
  • Learn to Perform Forensic TILA Audits 

Every consumer is entitled to "material" disclosures including the name of the holder and owner of an obligation under the Truth in Lending Act and the Real Estate Settlement Procedures Act.

A failure to provide accurate and proper "material" disclosures entitles a homeowner to rescind or cancel a mortgage transaction.

What is a "qualified written request" (QWR) as that term is defined and who is obligated by statute to answer your QWR?

Who is entitled to foreclose and who ain't?

Truth In Lending Rescission Rights arise automatically only when the transaction meets all of the following criteria, 15 U.S.C. § 1635; Reg. Z § 226.23:

The question becomes what is a purchase money security interest. Answer: Transactions where the security interest is created to finance the acquisition or initial construction of the dwelling are excluded from rescission rights, i.e. see 15 U.S.C. § 1635(e):

      “This section does not apply to –

           (1) a residential mortgage transaction as defined in section 1602(w) of this title;”

      15 U.S.C. § 1602(w): The term “residential mortgage transaction” means a transaction in which a       mortgage, deed of trust, purchase money security interest arising under an installment sales       contract, or equivalent consensual security interest is created or retained against the consumer’s       dwelling to finance the acquisition or initial construction of such dwelling.

The rescission right is absolute for three-days (3), but it may also last up to three-years (3), if you do not sell your home and if important Truth in Lending disclosures were not provided correctly and accurately at the time of consummation of the original transaction

Any credit transaction involving a home, other than the transaction for its purchase, that is less than three-years (3) old must be examined for Truth in Lending violations. If the original transaction for the purchase of a home has been replaced by refinancing or loan consolidation of the original mortgage loan by itself or with pay-off of other debt, the transaction is nonpurchase money and rescindable.

Rescission is a complete defense to foreclosure and rescission by Recoupment rights do not depend upon the happenstance of whether the consumer lives in a judicial or non-judicial foreclosure state.

Truth in Lending is a powerful tool providing an extremely beneficial remedy for consumers facing foreclosure. TILA rescission also provides an extremely beneficial remedy for consumers seeking a work-out or struggling to meet payments on a home mortgage loan with onerous terms. [Indeed it is so powerful a right that one court has held it may be malpractice for an attorney to fail to advise a client of her rescission rights. See In re West, Clearinghouse No. 46,795 (E.D. Pa. 1992)]

A Truth in Lending Act Audit of a mortgage loan is provided upon request and by consultation at the indicated link. Your failure to make the determination of this extremely powerful tool to stop a foreclosure can be detrimental to your success.

If you need answers to the above questions, call Dale Hollis (210) 447-7765 day or night for confidential consultation.

(DISCLAIMER: We are not attorneys, nor are we engaged in the practice of law.  If you need legal advice, please contact a professional competent attorney)