|
 The court will weigh whether homeowners need to write a letter to
their lender or file a lawsuit in order to benefit from a provision
of the federal law, known as the Truth in Lending Act. The law
allows consumers to rescind mortgages for up to three years after
the agreement was made if the lender does not notify them of various
details about the loan, including finance charges and rate of
interest.
The provision is typically used by homeowners who are struggling to
pay their mortgages. Lawyers for consumers say mortgage companies
routinely violated the law in the years prior to the 2008 financial
crisis.
Appeals courts are split over what homeowners have to do.
The court agreed to hear an appeal filed by Larry and Cheryle
Jesinoski over the $611,000 loan they obtained from Countrywide Home
Loans Inc. in 2007. Countrywide is now part of Bank of America Corp<BAC.N>.
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Oral arguments and a decision are expected in the court next term,
which begins in October and ends in June.
The case is Jesinoski v. Countrywide, U.S. Supreme Court, No.
13-684.
(Reporting by Lawrence Hurley; editing by Howard Goller and Dan
Grebler)
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