CHICAGO (CN) – “When a specific requirement is straightforward, lenders should not be able to dance around it in their disclosures,” Judge Wood wrote in a Seventh Circuit ruling against Ameriquest Mortgage.
The lender lost a consolidated appeal accusing it of failing to explicitly disclose payment due dates or payment periods to borrowers. Sarah Hamm and Shirley Jones sued the mortgage company and its subsidiaries in different federal courts, claiming the company obfuscated the payment requirements of their 30-year mortgages in violation of the Truth in Lending Act. They also claimed that Ameriquest’s one-week rescission right notice might cause borrowers to unknowingly give up their TILA-mandated rescission rights. “Hypertechnicality reigns” when it comes to the TILA, the circuit said. “The key point is that the borrower should not have to make any assumptions.” See ruling in Hamm v. Ameriquest Mortgage Company