Sherzer v. Homestar Mortgage Services: The Third Circuit Takes Sides in a Circuit Split Over How a Borrower Exercises Rescission Rights Under TILA

Schnader Alert by Stephen J. Shapiro:

The U.S. Court of Appeals for the Third Circuit recently took sides in a split between U.S. Circuit Courts of Appeal over what action borrowers must take to exercise their right to rescind a loan under the Truth in Lending Act. In Sherzer v. Homestar Mortgage Service, the Third Circuit ruled that borrowers need only send lenders valid notice, not file suit, within the time allowed under the statute in order to rescind a loan agreement.

Please click here to read the full Alert.

Gabelli v. SEC: the Supreme Court’s Statute of Limitations Ruling Puts Pressure on Federal Agencies to Investigate More Aggressively and Sue More Quickly

Schnader Alert by Stephen A. Fogdall:

The U.S. Supreme Court’s recent decision in Gabelli v. Securities and Exchange Commission holds that the SEC and other federal agencies are not entitled to the discovery rule to extend the accrual date of their enforcement claims, unless a specific federal statute provides otherwise. The decision will put pressure on agencies to use their investigative tools more aggressively, and to move from an investigative mode to a litigation posture more promptly. Thus, the practical effect of the decision may be to promote more rapid and less discriminating investigation and enforcement activity by some agencies to minimize the risk of a limitations bar.

Please click here to read the full Alert.

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