Complex Litigation: Mortgage Rescission

National Law Journal, Vol. 31, No. 10, p. 16, November 2008

U of Texas Law, Public Law Research Paper No. 417

5 Pages Posted: 9 Jun 2013

Date Written: November 10, 2008


Commentary and analysis of the possibility of classwide litigation over bad subprime mortgage loans under the federal Truth in Lending Act. This article discusses TILA’s various provisions as they intersect with class action procedure, and TILA’s limitations on remedies and monetary recoveries. The article focuses on various federal court decisions holding that the Truth in Lending Act’s provision for a rescission remedy does not authorize bad mortgage claims to be maintained in a class action. The Seventh Circuit additionally has staked out the extreme position that such claims are not suitable for certification either as a Rule 23(b)(2) action for declaratory relief, or alternatively under Rule 23(b)(3) in an action for damages. Finally, the article examines two federal court decisions where claimants have permitted TILA rescission cases.

Keywords: Class action litigation, sub-prime mortgages, Truth-in-Lending Act, TILA, rescission, damages actions

Suggested Citation

Mullenix, Linda S., Complex Litigation: Mortgage Rescission (November 10, 2008). National Law Journal, Vol. 31, No. 10, p. 16, November 2008; U of Texas Law, Public Law Research Paper No. 417. Available at SSRN:

Linda S. Mullenix (Contact Author)

University of Texas School of Law ( email )

727 East Dean Keeton Street
Austin, TX 78705
United States
512-232-1375 (Phone)

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