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#20771 - 06/13/02 10:20 PM Rescission Notice Model Forms
CalifDreamin Offline
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CalifDreamin
Joined: Mar 2002
Posts: 2,274
Far from Calif
Reg. Z §226.23(b)(2) says that to satisfy the disclosure requirements for rescission, "the creditor shall provide the appropriate model form in appendix H of this part or a substantially similar notice." Seems to me that essentially, this is saying that you cannot just choose to use Model H-8 for everything - you must choose the one that is most appropriate for the particular transaction. Am I being to picky in not wanting lending to simply use the H-8 General form for all transactions? (this issue carries over to open-end as well which has 5 model forms)
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Lending Compliance
#20772 - 06/13/02 10:26 PM Re: Rescission Notice Model Forms
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
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Central City, NE
I remember reading a court decision a few years ago (of course, I don't have a copy of it now) that a borrower was trying to rescind their loan and their defense was that they received the wrong rescission notice. The judge's ruling was for the bank and his/her comments were something like "a rescission notice is a rescission notice." It doesn't matter that the grammatic of the form didn't fit your specific situation. Does anyone have more information on this case?
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#20773 - 06/14/02 01:35 PM Re: Rescission Notice Model Forms
Howard Lax Offline
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Howard Lax
Joined: Jan 2002
Posts: 478
Bloomfield Hills, Michigan
The court case you remember (and I also remember the case) rejected a claim by a plaintiff that the lender should have revised the model disclosure to more closely describe the transaction. The commentary was also changed about that time. There is a general notice and a notice for specific situation where the borrower is refinancing with the original creditor. Use the appropriate form.
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#20774 - 06/14/02 04:59 PM Re: Rescission Notice Model Forms
CalifDreamin Offline
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CalifDreamin
Joined: Mar 2002
Posts: 2,274
Far from Calif
I had a feeling we should use the appropriate form, but RE is insisting that because Reg. Z says your notice just has to be substantially similar that they are okay using the general for all transactions.

Thanks for your help! If anyone figures out what court case that was, please post it.
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#20775 - 06/17/02 09:28 PM Re: Rescission Notice Model Forms
Anonymous
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The case is a 1992 3rd Circuit case, In re Porter, 961 F2d 1066. There is a very recent case as well, a U.S. Dist. case for the Northern District of California - Gibbons v. Interbank Funding Group, 2002 U.S. Dist. LEXIS 8394.

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#20776 - 06/18/02 03:10 PM Re: Rescission Notice Model Forms
CalifDreamin Offline
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CalifDreamin
Joined: Mar 2002
Posts: 2,274
Far from Calif
Thank you!
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#20777 - 06/19/02 03:46 PM Re: Rescission Notice Model Forms
CalifDreamin Offline
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CalifDreamin
Joined: Mar 2002
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Far from Calif
Is there a way to access these cases if we don't have Lexis Nexus?
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#20778 - 06/19/02 04:09 PM Re: Rescission Notice Model Forms
Howard Lax Offline
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Howard Lax
Joined: Jan 2002
Posts: 478
Bloomfield Hills, Michigan
http://www.lexisone.com

You must register. This decision is not posted on Lexis One, and I am not sure why.
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