Beach v. Ocwen Federal Bank

Under the Truth in Lending Act, 82 Stat. 146, 16 U. S. C. § 1601 et seq., when a loan made in a consumer credit transaction is secured by the borrower’s principal dwelling, the borrower may rescind the loan agreement if the lender fails to deliver certain forms or to disclose important terms accurately. See 15 U. S. C. § 1635. Under § 1635(f) of the statute, this right of rescission “shall expire” in the usual case three years after the loan eloses or upon the sale of the secured property, whichever date is earlier. The question here is whether a borrower may assert this right to rescind as…