“My cloudy days have been declouded
Since you’re here so keep on shining
Sunny boy, sunny boy . . . “

– From “He’s My Sunny Boy”  
Lyrics by Smokey Robinson

Performed by Diana Ross & The Supremes

The Supremes come through!

We all know about the 3-day right of rescission.  But a very recent U.S. Supreme Court case upholds a little know and powerful consumer protection right when the lender’s disclosure paperwork is not in order.  Maybe this is why there is so much stress getting to the closing table these days. Yes, I said Consumer Protection, upholding and U.S. Supreme Court in the same sentence.

A very recent U.S. Supreme Court case brings some focus on the very important consumer right of rescission as codified in the Federal Code at 12 C.F.R. § 226.23(a)(3) and 12 C.F.R. § 226.2(a)(13).  We all know about the 3-day right of rescission for certain consumer secured transactions including residential refinances.  But did you know about the three year rule?

JESINOSKI ET UX. v. COUNTRYWIDE HOME LOANS, INC., ET AL., No. 13–684. Argued November 4, 2014—Decided January 13, 2015 highlights the 3-year rule over each and every one of these transactions, in that if the Lender fails to properly disclose the required information at time of closing the 3-day right of rescission extends to 3 years.  Yes I said 3 years.  Check it out by reading this case (and the rule).