November 16, 2010

Board of Governors of the Federal Reserve System

20th Street and Constitution Avenue, Northwest
Washington, D C 2 0 5 5 1

Re: Withdrawal Request for the Proposed Truth in Lending Mortgage Regulations
(F RB Docket Number.R- 1 3 9 0)

Dear Board of Governors:

This letter is from individual attorneys who regularly represent low or moderate income
homeowners in defense of foreclosures, as well as national, state and local advocacy organizations,
some of whom are a part of the Americans for Financial Reform coalition, others who are legal aid
or community housing programs. We write this letter to make the unprecedented request that you
w i t h d r a w the proposed Truth in Lending ("T I LA") mortgage regulations in F RB DocketNumberR-
1 3 9 0. Foot note 1.
See http://www.federalreserve.gov/newsevents/press/bcreg/20100816e.htm. End of foot note.
In the face of an unparalleled foreclosure crisis, now is the time to reinforce the fundamental
importance of T I LA rescission. Instead, the Board's proposal would eviscerate the single most
effective tool that homeowners have to stop foreclosures a n d avoid predatory loans: the
extended right of rescission.
The FRB Docket R- 1 3 9 0 contains a series of proposed changes to the T I LA rules
governing mortgage lending. A few of the proposed changes, including new "material
disclosures" for home secured credit, would advance consumer protections. Some changes are
neither particularly damaging nor particularly beneficial to consumers. Other parts of the proposal,
however, would seriously undermine the reliability of T I LA disclosures on home secured credit.
Instead of informing consumers about the terms of their loans as Congress intended, these proposals
would allow broad misstatements of loan terms through new tolerances that are without statutory
authority.
A much greater concern is the proposed decimation of T I LA's right of rescission. At the
depths of the worst foreclosure crisis since the Great Depression, we are surprised that the Federal
Reserve Board has proposed rules that would eviscerate the primary protection homeowners
currently have to escape abusive loans and avoid foreclosure: the extended right of rescission in 12
C F R § 2 26.15 and 2 26.23.

The Truth in Lending Act passed by Congress specifically provides consumers the right to
unwind an illegal loan through "rescission" for up to three years after the loan was consummated.
The statute and current Board regulations both provide that if the proper disclosures were not
provided to the homeowner at the closing, the homeowner can rescind the loan by sending a notice
to the creditor. The statute then requires the creditor to cancel the security interest. Only after the
creditor has complied with its obligation to cancel the security interest is the homeowner required to
pay back the lender the amount still due on the loan. This order of obligations is the essence of the
protection provided by T I LA's extended right of rescission. The cancelling of the security interest
means that the homeowner has a defense to a foreclosure. It also means that the homeowner has the
means to obtain refinancing so as to be able to tender the amount due. The extended right of
rescission does not mean that the homeowner does not have to repay the loan. While the amount due
is reduced by the finance charges, fees and amounts the homeowner has already paid, the balance is
still due the creditor.
 Despite the clear order of these events set out in the Act passed by Congress, the Board's
proposed regulations would make the extended right of rescission useless by requiring that the
homeowner must pay the entire amount demanded by the creditor before the creditor is required to cancel
the security interest in the home. This proposed changed order will undermine the primary purpose
and power of T I LA's extended right of rescission the mandatory cancellation of the security
interest by the creditor upon receipt of the homeowner's notice. It is the order of events which has
meant that the extended right of rescission under T I LA has been the primary home-saving legal tool
against predatory loans and foreclosures for the past forty two years. This proposal would make it
completely useless to all but the wealthiest homeowners.

The extended right of rescission is a critical tool necessary to enforce the strict disclosure
requirements in the Truth in Lending Act. It is far preferable to provide substantive limits to abusive
products and features, but for the most part, regulation of our current mortgage market depends on
disclosure of the real terms of the transaction to provide some balance between the parties to a
mortgage transaction. If even these the disclosure requirements are undermined, most homeowners
have no hope of navigating the mostly caveat emptor nature of today's mortgage market

In the great majority of cases brought to stop a foreclosure in the majority of states, T I LA
rescission claims are included. Passage of the proposed rule will considerably exacerbate foreclosure
statistics in this nation harming countless homeowners, communities and the economy.

Additionally, the tolerances and changes to the material disclosures proposed in this docket
would also harm consumers.

For these reasons, we request that you withdraw the entire docket, and leave the update of
T I LA to the Consumer Financial Protection Bureau when it takes over this area in July, 2011.

Sincerely,

National C o n s u m e r a n d Civil R i g h t s Organizations.

Americans for Financial Reform.
Campaign for America's Future.
Center for Media and Democracy.
Center for Responsible Lending.
Consumer Action.
Consumer Federation of America.
Consumers Union.
The Leadership Conference on Civil and Human Rights.
N AA CP.
National Association of Consumer Advocates.
National Community Reinvestment Coalition.
National Consumer Law Center on behalf of its low-income clients.
National Fair Housing Alliance.
National People's Action.
Service Employees International Union.
U.S. Public Interest Research Group.

State a n d Local L e g a l Services P r o g r a m s .

Housing Economic Rights Advocates, Oakland, California.
Legal Aid Foundation of Los Angeles, California.
Connecticut Fair Housing Center.
Jacksonville Area Legal Aid, Inc., Florida.

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Legal Aid Society of Palm Beach County, Florida.
Legal Services of Greater Miami, Florida.
Atlanta Legal Aid Society, Inc., Georgia.
Legal Assistance Foundation of Metro Chicago, Illinois.
Consumer Advocacy Center, Chicago, Illinois.
Kentucky Equal Justice Center.
Public Justice Center of Maryland.
Michigan Advocacy Project.
UAW Legal Services, Detroit, Michigan.
Housing Preservation Project, St. Paul, Minnesota.
Senior Citizens Law Office, Albuquerque,NewMexico.
Legal Services of New Jersey.
Neighborhood Economic Development Advocacy Project, New York, New York.
Empire Justice Center, New York.
Elder Law Clinic, St. John's University School of Law, Queens, New York. Financial Protection Law Cente

Housing Research & Advocacy Center, Cleveland, Ohio.

Ohio Association for Justice.
Northeast Ohio Legal Services, Youngstown, Ohio.
Advocates for Basic Legal Equality, Ohio.
Summit County Office of Consumer Affairs, Ohio.
Community Legal Services, Inc., Philadelphia, Pennsylvania.
Senior Citizens Law Office, Philadelphia, Pennsylvania.
Virginia Poverty Law Center, Virginia.
Legal Aid Justice Center, Charlottesville, Virginia.
Northwest Justice Project, Seattle, Washington.
Columbia Legal Services (on behalf of clients), Washington.
Mountain State Justice,WestVirginia.
Consumer Justice Law Center, Big Bend, Wisconsin.

Attorneys Regularly Representing Homi Fighting Foreclosures

Wesley Phillips, Birmingham, Alabama.
Adam Bourne, Mobile Alabama.
Noah Zinner, Oakland, California.
Jenkins Mulligan & Gabriel LLP, San
Francisco, California.
Henry Martin, Watsonville, California.
Pamela D. Simmons, Soquel, California.
Dorothy Herrera Settlage, Los Angeles, California.
Andrew Ogilvie, San Francisco, California.
Desraeli Fredler, Marysville, California.
Andrew Cleo, Bueno Park, California.
Elizabeth Letcher, Oakland, California.
Dori Rose Inda, Watsonville, California.
Karuna Patel, Washington, D C
Margot Saunders, Washington, D C
Alys Cohen, Washington, D C
Nina E. Perry, Bradenton, Florida.
Gloria Einstein, Jacksonville, Florida.
David Abrams, Tallahassee, Florida.
Rebecca J . Covey, Fort Lauderdale, Florida.
Anita Lapidus, Daytona Beach, Florida.
Carter Young, Pensacola, Florida.
Jennifer Newton, Tallahassee, Florida.
Laura Boeckman, Jacksonville, Florida.
Jan Bendik, Gainseville, Florida.
Terry Haygood, Rome, Georgia.
Molly Sutter, Columbus, Georgia.
Al Hofeld, Chicago, Illinois.
Daniel A. Edelman, Chicago, Illinois.
Michelle A. Weinberg, Chicago, Illinois.
Alan A. Alop, Chicago, Illinois.
Brenda Grauer, Chicago, Illinois.
David Yen. Chicago, Illinois.
Sabrina Herrill, Chicago, Illinois.
Mila Novak, Melrose Park, Illinois.
Herman Mathews, Chicago, Illinois.
Judith Fox, South Bend, Indiana.
David Pesel, Bloomington, Indiana.
Steven Hofer, Indianopolis, Indiana.
Christine M. Jackson, Indianopolis, Indiana.

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Syed Ali Saeed, Indianapolis, Indiana.
Christine Jackson, Indianopolis, Indiana.
Wesley M. Nakajima, Covington, Kentucky.
Lois Renfro Morris, Barboursville, Kentucky.
J . Eileen Zell, Covington, Kentucky.
Glenda Harrison, Covington, Kentucky.
Thomas A. Cox, Portland, Maine.
Frank D'Allesandro, Portland, Maine.
Eugen McLaughlin, Presque Isle, Maine.
Michael Gregg Morin, Annapolis, Maryland.
Philip Robinson, Baltimore, Maryland.
Mark Leymaster, Silver Spring, Maryland.
Jane Santon, Towson, Maryland.
Joseph V. Delclos, Baltimore, Maryland.
Marceline White, Baltimore, Maryland.
Roddy Klein & Ryan, Boston, Massachusetts.
Professor Kathleen Engel,Boston, Massachusetts.
Deborah G. Roher, Fall River, Massachusetts.
Stuart Rossman, Boston, Massachusetts.
Fancis K. Morris, Springfield, Massachusetts.
Charles Delbaum, Boston, Massachusetts.
Francis K. Morris, Springfield Massachusetts.
Christine Anderson, New Bedford, Massachusetts.
Odette Williamson, Boston, Massachusetts.
Chi Chi Wu, Boston, Massachusetts.
Angela S. Tripp Ann Arbor, Michigan.
Lorray S.C. Brown, Ann Arbor, MI
Frederick L. Miller, Detroit, MI
Karen Merril Tjapkes, Grand Rapids, MI
Joon H. Sung, University of Detroit, MI
Jane Bowman, St. Paul, MN
John H. Goolsby, Minneapolis, MN
Jovanna R. Longo, St. Louis, MO
Michael Eakin, Billings, MT
Craig Friedberg, Las Vegas, NV
Jennifer Neans, Carson City, NV
Jon Garbino, Amherst, NH
Gail Chester, Perth, Amboy, NJ
Nicole Palmieri, Somerset, NJ
Lucrecia Jaramillo, Albuquerque, NM
Joseph B. Coffey, Albuquerque, NM
Richard J . Rubin, Santa Fe, NM
Michael Wigutow, Hempstead, NY
Carla Latty, New York, NY
Catherine Isobe, Brooklyn, NY
Gina M. Calabrese, Queens, NY
Sumani Lanka, Kew Gardens, NY
Nicole Woods, Bronx, NY
Ronald J . Kim, Saratogo Springs, NY
Mary E. Traynor, Syracuse, NY
Sarah Manaugh, Brooklyn, NY
Logan Schiff, New York, NY
Jehan Aslem Patterson,NewYork.
Joe Sanders, New York,NewYork.
Eric Feinberg, New York,NewYork.
Cyrus Dugger, New York,NewYork.
Jennifer Quitana, Kew Gardens, NY
Stuart Davis, Bronx,NewYork.
Jessica Yager, Brooklyn,NewYork.
Erica Jo Gilles, Brooklyn,NewYork.
Laurie Izutsu-Keener, Brooklyn,NewYork.
Wendy Dolce, Elmont,NewYork.
Jonathan Fox, New York,NewYork.
Karamvir Dahiya, New York,NewYork.
Peter R. Shedor, Cary,NorthCarolina.
Mal Maynard, Wilminton,NorthCarolina.
Jeffrey H. Friedman, Cleveland, Ohio.
Ronald Burdge, Dayton, Ohio.
Laura J . Martin, Dayton, Ohio.
John B. Caldwell, West Union, Ohio.
Amy Wells, Dayton, Ohio.
Laura K. McDowall, Akron, Ohio.
Philip Zuzulo Niles, Ohio.
Candace M. Pollock Cleveland, Ohio.
John B. Bellamy Cleveland, Ohio.
Kathryn Harlow, Cleveland, Ohio.
Ellen Keller, Cleveland, Ohio.
Grant Goodman, Cleveland, Ohio.
Tom Mikulka Youngstown, Ohio.
James B. Callen, Youngstown, Ohio.
Koula Glaros-King , Youngstown, Ohio.
Daniel P. Lang, Parma, Ohio.
Gary W. Kisling, Fairlawn,. Ohio.
Craig Barclay, Columbus, Ohio.
Scott Spero, Cleveland, Ohio.
Jack Weisensell, Akron, Ohio.
Scott Elliot Smith, Columbus, Ohio.
Michael R. Thomas, Springboro, Ohio.
John B. Fisher, Sylvania, Ohio.
William C. Knapp, Cincinnati, Ohio.
Christopher J . Hickey, Rocky River, Ohio.
Andy Cecil, Columbus, Ohio.
Megan Richards, Middletown, Ohio.
E. Ray Critchett, Dublin, Ohio.
William Eadie, Cleveland, Ohio.
Donald P. Morrisroe, Cincinnati, Ohio.
David A. Kulwicki, Cleveland, Ohio.
Mike Felleur,Westerville, Ohio.
Thomas Myers,St. Clairsville, Ohio.
Daniel G. Camick, Toledo, Ohio.
Brian R. Wilson, Canton, Ohio.
Daniel R. Karon, Cleveland, Ohio.
Gerald R. Horning, Cleveland, Ohio.
Diane E. Hanson, Dayton, Ohio.
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Francis E. Sweeney, Jr.,Cleveland, Ohio. Brian T. Stepphensen, Salt Lake City, Utah.
Nancy C. Iler,Cleveland, Ohio. Sheila Canavan, Moab, Utah.
Arnold White, Ohio. James W. Speer, Richmond, Virginia.
Teresa Dewey Bacho, Toledo, Ohio. Tom Domonoske, Charlottesville, Virginia.
Jack Melicki, Elyria, Ohio. Marcel Slag, Richmond, Virginia.
Tamara, Parker, Columbus, Ohio. Brenda Castaneda, Charlottesville, Virginia.
Mark Cardosi, Pourtsmouth, Ohio. Erin Trodden, Charlottesville, Virginia.
Lauren E. Dreshman, Findlay, Ohio. Gary L. Abbott, Newport News, Virginia.
Jim Gutbrod, Akron, Ohio. Ron Minionis, Alexandria, Virginia.
Keith Randall, Alliance, Ohio. Melissa Huelsman, Seattle, Washington.
Carla Bulford, Akron, Ohio. Gary M. Smith, Pasis, Washington.
David E. Hardy, Oklahomoa City, Oklahoma. Shayne Sutherland, Spokane, Washington.
Jay B. Derum, Portland, Oregon. Alan McNeil, Spokane, Washington.
Phil Goldsmith, Portland Oregon. Rory O'Sullivan, Seattle, Washington.
Robert S. Sola, Portland, Oregon. Daniel F. Hedges, Charleston,WestVirginia.
Jana-Lyn Weisman, Philadelphia, Pennsylvania. Bren Pomponio, Charleston,WestVirginia.
David E. Pearson, Philadelphia, Pennsylvania. Kristina Whiteaker, Charleston,WestVirginia.
Kimberly A. Tynan, Philadelphia, Pennsylvania. John W. Barrett, Charleston,WestVirginia.
Michael D. Donovan, Philadelphia, Pennsylvania. David Grubb, Charleston, West Virginia.
Peter D. Schneider, Philadelephia, Pennsylvania. Rollie Hanson, West Ellis, Wisconsin.
Craig Thor Kimmel, Ambler, Pennsylvania. Christine Wolk, Oshkosh, Wisconsin.
Joseph K. Goldberg, Harrisburg, Pennsylvania. Susan LaCava, Madison, Wisconsin.
Susan DeJarnatt, Philadelphia, Pennsylvania. Devonna Joy, Big Bend, Wisconsin.
William J . Woodward, Philadelphia, Pennsylvania.
John DiBernardino, Lehighton, Pennsylvania.
Michael Malokoff, Pittsburg, Pennsylvania.
Irwin Trauss, Philadelphia, Pennsylvania.
Robert S. Shreve, Pittsburg, Pennsylvania.
Michele Cohn Philadelphia, Pennsylvania.
Margaret Robinson, Philadelphia, Pennsylvania.
James A. Francis, Philadelphia, Pennsylvania.
Kerry Smith, Philadelphia, Pennsylvania.
John R. Cantrell, Goose Creek,SouthCarolina.
John D. Compton, Greenwood,SouthCarolina.
Alecia T. Compton, Greenwood,SouthCarolina.
Philip Fairbanks, Beaufort,SouthCarolina.
Mary Leah Arnold,MountPleasant,SouthCarolina.
Matthew Billingsley, North Charleston,SouthCarolina.
Terry Woods, Knoxville, Tennessee.
David Tarpley, Nashville, Tennessee.
Ashely Holliday, Jackson, Tennessee.
Charles Holliday, Jackson, Tennessee.
Janet Mynatt, Oak Ridge, Tennessee.
Carol Gish, Jackson, Tennessee.
Amy Kleinpeter, Austin, Texas.
Ira Joffee, Belaire, Texas.
Greg Nadler, Houston, Texas.
E. Wendy Austrie, Bronx,NewYork.
Mark E. Steiner, Houston, Texas.
Molly Rogers, Austin, Texas.
Genevieve Fajardo, San Antonio, Texas.
Martin Woodward, Dallas, Texas.

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