SCOTUS – RESCISSION CASE

As we originally reported in Spring 2014 the Supreme Court of the United States (SCOTUS) granted review in the case of Jesinoski v. Countrywide Home Loans. In the case, argued on November 4, 2014, and decided January 13, 2015, SCOTUS reversed and remanded the decision of the Eighth Circuit Court of Appeals. In a unanimous opinion delivered by Justice Scalia, the court held that a “borrower exercising his right to rescind under the Act need only provide written notice to his lender within the 3-year period, not file suit within that period.”

The decision settles the question of how a mortgagor must exercise his right to rescind. The issue of whether the Jesinoskis had the right to rescind the mortgage was not decided; so the case was sent back to the lower court.

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