The Truth in Lending Act (TILA) is a federal law that standardizes the way that creditors disclose the terms of credit to their consumers. If a lender fails to comply with the strict standards of the TILA the penalties may be severe for the lender. Penalties for violations of the TILA can range anywhere from a monetary penalty to rescission of the mortgage. Rescission of a mortgage gives the borrower back all of the fees, payments of principal and interest, closing costs and any down payments made.
There are only a few violations of the TILA that will give the homeowner the option of rescission. For other violations of the TILA, the failure to disclose will give rise to the actual damages and additional statutory damages not less than $200 for equity loans and $2,000 if the loan is not a home equity loan. For the statutory damages under the TILA, a homeowner may only recover for one failure to disclose, regardless of how many violations there were.
If you recently purchased a home and your lender did not disclose all of the information that is required under the TILA, contact A Jacksonville Foreclosure Defense Lawyer or Florida Foreclosure Lawyer to help identify TILA violations committed by your lender and get you the relief that you are entitled to.
