New RESPA, TILA Rules Could Cause More Rescission Claims, Moody’s Warns
January 29, 2010
New consumer protection rules under the Real Estate Settlement Procedures Act and the Truth in Lending Act are raising concerns among credit rating agencies of potentially increased borrower rescission claims against lenders due to improper disclosure of mortgage settlement costs. Analysts with Moody’s Rating Services said that inaccurate TILA disclosures could provide not only grounds for...