04
Apr
2017
Mortgage Violates Truth in Lending Act
In this case, the lender’s Truth-in-Lending (TILA) disclosure provided that the borrowers were granting a security interest in the borrowers’ real estate and in all after acquired property as additional security for future advances.
The mortgage document did not, however, contain the same language and did not grant a security interest to the lender in all after acquired property.
The court held, as a matter of law, that:
… the lender’s mortgage document violated the TILA since it did not describe the pledged collateral as was more broadly depicted in the TILA disclosure.
The court awarded debtors $1,000 in statutory damages. Horizon Financial v. Susan Norris, 138 B.R. 467.
Author:Â Charles R. Harroun, Attorney at Law
This entry was posted
on Tuesday, April 4th, 2017 at 4:34 am and is filed under Mortgages, National, Secured Loans, Truth In Lending.
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