This is an update on the issue decided in the Williams vs. Wells Fargo Home Mortgage, Inc. case senior attorney Kent Kluver reported on in a previous article.
A second case has been appealed to the Federal Circuit Court level. In Rosenfield vs. HSBC Bank, USA, the District Court decided that a consumer exercising the right to rescind needed to file suit against the lender in addition to notifying the lender within the three-year rescission timeframe. The case has been appealed to the Third Federal Circuit Court of Appeals.
What makes this case unusual is that the Consumer Finance Protection Bureau, or CFPB, has filed an amicus brief in the case. An amicus brief is offered by someone who's not a party to the actual litigation, but has a strong interest in its outcome. Under those circumstances, a court will sometimes allow a nonparty to file a brief or even make oral arguments. The CFPB says, "Amicus briefs are an important way for the CFPB to ensure that the statutes it oversees are correctly and consistently interpreted by the courts, even in cases in which the CFPB is not itself a named party."
The CFPB's amicus brief argues that the consumer only needs to notify the lender in order to exercise the consumer's right to rescind and that neither the statute nor the regulation require the consumer to file suit against the lender with three-year period.
We'll be tracking the Rosenfield case and report any further developments.