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Eleventh Circuit Clarifies Meaning of Consummation of Transaction in Dismissing Borrowers’ TILA Right of Rescission Claim

Consumer Finance Watch

In Woide v. Federal Nat’l Mortg. Ass’n, the United States Court of Appeals for the Eleventh Circuit held that consummation of a contract for purposes of asserting a right of rescission under the Truth in Lending Act (“TILA”) occurs when a borrower signs the pertinent loan documents. Woide v. Federal Nat’l Mortg. Ass’n., 2017 WL 3411701 (11th Cir. Aug. 9, 2017).

On December 7, 2011, Federal National Mortgage Association (“Fannie Mae”) filed a foreclosure lawsuit against Charles and Susannah Woide (“Plaintiffs”) in state court after they defaulted on their mortgage. On April 1, 2015, the Plaintiffs notified Fannie Mae by mail that they were rescinding the mortgage pursuant to Section 1601-1667f of TILA. Subsequently, Plaintiffs filed a lawsuit in the Middle District of Florida against Fannie Mae and the law firms that handled their foreclosure action seeking a declaratory judgment that Plaintiffs rescinded their mortgage obligation under TILA and requesting that Fannie Mae disgorge all monies that it allegedly unlawfully retained under Plaintiff’s mortgage.

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