Cancel My Mortgage

"You didn't properly tell me the terms of my loan!"

That's apparently the basis of the lawsuit that I read about in Reuters today.

Here's a link to the ARTICLE

I don't know much about the difference between a class action suit and the court of appeals.  But there are certain facts I do know. 

• These people had a Payment Option ARM starting at 1.95% (Teaser Rate)
• These loans were notoriously sold to all the wrong people for all the wrong reasons.
• The Truth in Lending Act requires what is called the Truth In Lending Statement to be provided by the Lender to the Borrower.
• The final version of that statement should match the terms of the loan.

This comes right on the heels of Wachovia's decision to eliminate all forms of these loans.

I've never been a big fan of these loans.  They were the favorite tool of many unethical lenders in making copious amounts of money off of unsuspecting borrowers who focused only on the 1.95% rate.  Did they even look at the TIL?  Many of these were sold to people who thought (or were told) the Teaser Rate was the same thing as the Note Rate.

I'm not letting the general public off for shirking their due diligence either.  Can I blame the blue collar welder for not knowing better?  How about someone who should have, could have, known better?  Personally I have seen mid level administrators for both the Federal Reserve and the US Treasury facing a recast with these loans.

I believe the responsibility falls on everyone.  From the borrower, the loan officer, the underwriter, the lender and even the real estate agent.