Cordray Urges Federal Reserve Not to Erode Consumer Rights

Cordray Urges Federal Reserve Not to Erode Consumer Rights

(COLUMBUS, Ohio) — In a letter sent today to the Federal Reserve’s Board of Governors, Ohio Attorney General Richard Cordray urged the Fed to maintain existing protection for homeowners who currently have the right to undo loan agreements where material disclosures were not made, in violation of the law. The existing provisions that protect a consumer’s right to rescind such loan agreements – including mortgage loan agreements – could be greatly weakened through a proposed rule now under consideration by the central bank.

In the letter, Cordray outlines the effectiveness of rescission as an avenue of relief for consumers facing foreclosure as well as an important tool to enforce the various other disclosure requirements imposed by the Truth In Lending Act (TILA). Cordray urges the Federal Reserve to withdraw proposed regulations that would effectively reorder the steps to be taken when a consumer exercises the right of rescission.

The rule, as currently in effect, requires that the lender remove the mortgage lien first, providing the homeowner valuable leverage to negotiate fair terms to pay back the loan.  The new rule would require the homeowner to first pay the amount demanded by the lender, before the lender removes its mortgage lien on an illegal loan.

“The Federal Reserve’s proposed regulations would not only make rescission a less useful tool for most consumers, but the regulations also would actively discourage and heavily burden consumers from exercising their rights,” Cordray stated.

The right to rescind is a longstanding provision of TILA, “to assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit.” In September, the Federal Reserve proposed new regulations as part of an update to TILA, and the public comment period ends today.

Since taking office in January 2009, Ohio Attorney General Richard Cordray has made the fight against foreclosures in Ohio a top priority. He has launched an aggressive effort to hold home appraisal companies, mortgage servicers, predatory lenders and rescue scam operations accountable for the foreclosure crisis. As a result, he has filed lawsuits against mortgage servicers Carrington Mortgage Services, American Home Mortgage Servicing Inc., Barclays Capital Real Estate dba HomEq Servicing, and GMAC. These lawsuits allege violations of Ohio’s Consumer Sales Practices Act. The lawsuits, the first of their kind in the nation, aim to hold these servicers accountable for how they deal with borrowers facing foreclosure.

SOURCE: Ohio Attorney General


Comments to Notice of Proposed Rulemaking, R-1390 Regulation Z – Truth In Lending Act

4 Responses to “Cordray Urges Federal Reserve Not to Erode Consumer Rights”
  1. How can we get more like CORDRAY in the government? This guy gets it! but is the exception

  2. Kathleen Burt says:

    Could we send a petition in support of AG Cordray?

  3. l vent says:

    Yes, finally a politician who gets it. National strategic default is just the start we need in order to begin to take our country back from the criminal dictators who are running it. We The People need to default from all of the UNSECURED DEBT that “THEY” are trying to bury us alive with in order to make us debtor slaves impoverished and living under their dictatorship forever. We The People need a clean slate.. This will be our bailout from THEM. Nationwide default which will begin to create National Sovereignty FROM THEM and will begin to starve the beast and free the slaves. Free from debt is true Freedom and “THEY” know this .Defaulting on unsecured debt is not a crime. “THEY” just want you to think that it is and have used many tactics such as credit scores to enslave us. “THEY” caused the intentional financial collapse in order to trap us all into paying all of the UNSECURED DEBT that “THEY” created in order to enslave us. We fell for the bait. I don’t believe for a minute this nation is broke and if we are then the criminals (Wall Street and the Banks) need to be made to put back the money they stole from us and then they can go to prison where they belong.. “THEY” stole all of OUR WEALTH and our children’s WEALTH that WE helped them create and took it out of our country and left us holding the bag of UNSECURED DEBT that THEY CREATED. America needs to think outside of the box here and free themselves from their evil plan or the next step for THEM is to place a microchip in OUR hands and then THEY will gain the ultimate control over ALL OF US. If you do not believe that look for the you tube video with that old fart Andy Rooney trying to tell EVERYONE to put a RFID microchip in their hands. That is the way they want to complete their evil plan to control every aspect of our lives. First they steal your Freedom then your Wealth then your homes and properties, then they put the microchip in you to make sure you pay and pay for THEIR CRIMES.. We need to be indivisible here as a people and a nation to put a halt to their evil plans for all of us.

    • allisunra says:

      If the Federal Reserve is neither a governmental institution, nor any true governmental agency, nor a judicial nor lawmaking body, how do they get to override existing LAW such as TILA and RESPA any how?

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