Fed Proposal Will Pull Rug Out From Under Homeowners Enforcing "Truth In Lending" Rights When Fighting Illegal Loans: Consumer Advocates

From a press release from the National Consumer Law Center:

• Hundreds of consumer, civil rights, legal services, community and labor groups and private and public interest attorneys representing homeowners, along with the coalition Americans for Financial Reform, urged the Federal Reserve Board to withdraw a proposed rule that would destroy a key legal tool to unwind illegal loans and avoid foreclosure.

• "We are astonished that, with the nation facing its greatest foreclosure crisis since the Great Depression, the Board's proposal would eliminate the single most powerful legal tool that homeowners currently have to stop wrongful foreclosures, the federal right to rescind an illegal loan," said Margot Saunders, Counsel to the National Consumer Law Center.

• "The proposed rule not only weakens protections against predatory lending and foreclosures, but it would give lenders more freedom to provide inaccurate information about the cost of their loans," said Michael Calhoun, President of the Center for Responsible Lending.

For more, see Fed Proposal Would Eviscerate Homeowners' Most Powerful Remedy to Stop Foreclosures of Illegal Loans (Hundreds of consumer, civil rights groups, homeowner attorneys sign letter demanding withdrawal of proposed rule).

Go here for the letter from hundreds of consumer advocates, attorneys, etc. sent to the Board of Governors of the Federal Reserve System.