The Fourth Circuit Court of Appeals sided with the Consumer Financial Protection Bureau’s (CFPB) reasoning in an amicus brief and broke ranks with other courts in ruling on a borrower’s right to rescind and void a mortgage contract.  

It is customary for servicers to assume a homeowner’s right to rescind a mortgage expires three years after origination if the borrower hasn’t filed a lawsuit. (Plaintiffs can sue lenders claiming they violated the Truth in Lending Act by incorrectly disclosing key features of their mortgage.)   

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