[timob1973]

I’ve been in countless seminars in which Jack has discussed the issue of the Regulation Z law being different from the Regulation Z Regulation that requires the right to rescind. Basically, the law states that if a consumer’s principal dwelling is taken (for applicable transactions) that the borrower has the right to rescind. While the regulation notes that it has to be a borrower’s ownership interest in a principle dwelling.

Can anyone point me to the law? I need to be able to show it to Management. I have the regulation, I just don’t have the law to show them the contradiction. Any help would be appreciated.

[kmeade]

This is what I have in my notes, hope it helps.

Regulation Z 1026.15 – In a credit transaction in which a security interest is or will be retained or acquired in the consumer’s principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction.

Truth in Lending Act (Law) 12 CFR 226.23 – In the case of any consumer credit transaction in which a security interest is or will be retained or acquired in any property which is used as a principal dwelling of the person to whom credit is extended, the obligor shall have the right to rescind the transaction.

[timob1973]

Jack…..can you provide any additional insight? It looks like when we read both, they are still referring to ownership interest.

[rcooper]

timob1973,
Here is the link to the applicable portion of the TILA:
https://www.law.cornell.edu/uscode/text/15/1635.

And here’s a q&a in which Jack’s explains the discrepancy: https://mycomplianceresource.com/forums/topic/rescission-intended-for-jack/

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