Supreme Court of the United States
Beach v. Ocwen Federal Bank
April 21, 1998523 U.S. 410
Summary
In a unanimous opinion by Justice Souter, the Court held that the Truth in Lending Act’s three-year period under § 1635(f) extinguishes the federal right of rescission itself, preventing borrowers from asserting rescission defensively in a foreclosure action after that period expires. Unlike the Act’s damages provision, which expressly preserves recoupment defenses beyond its limitations period, the rescission provision contains no comparable exception. The Court affirmed the Supreme Court of Florida and reserved any question concerning independent state-law rights of defensive rescission. There were no separate opinions.
Holding
- Availability of federal rescission as a defense after expiration of § 1635(f)’s three-year period.. Section 1635(f) extinguishes the federal right of rescission at the end of the three-year period, so that right cannot thereafter be asserted defensively or otherwise.
Docket 97-5310
Cited authorities
- 15 U.S.C. §§1635
- 82 Stat. 146
- 16 U.S.C. § 1601
- 15 U.S.C. § 1635
- 15 U.S.C. § 1601
- 49 U.S.C. § 11706
- 15 U.S.C. § 1640
- 109 Stat. 275
Cited by
- Sullivan v. Fairbank
- Kenneth D. May & another v. SunTrust Mortgage, Inc
- In Re Kathleen A. Thomas, Debtor. Kathleen A. Thomas v. Citimortgage, Inc., Flagstar Bank, Fsb, and Allied Home…
- Waldrup & Household v. Leva
- Richard Belini; Theresa Luscier-Belini, Plaintiffs, Appellants v. Washington Mutual Bank, Fa, Defendant, Appellee
- Ralph McKenna, Plaintiffs, Appellees v. First Horizon Home Loan Corp., Defendant, Appellant
- Gordon T. James, Third-Party Plaintiff v. Gmac Mortgage LLC and Quicken Loans Inc., Third-Party Defendants; Gordon…
- In Re Laura Sheedy, Debtor. Laura Sheedy, Plaintiff, Appellant v. Deutsche Bank National Trust Company, as Trustee…