1st Circuit Affirms Ruling That Man Waived Lending Law Claim Through Modification
BOSTON - A First Circuit U.S. Court of Appeals panel on Jan. 6 affirmed the dismissal of a man's lawsuit brought under the Massachusetts Consumer Credit Cost Disclosure Act (MCCCDA), after finding that his entry into a loan modification agreement waived his right to rescind the loan and that the original lender's calculations of the loan's annual percentage rate (APR) did not violate either the state statute or the federal Truth in Lending Act (TILA) (Angelo DiVittorio v. HSBC Bank USA, et al., No. 11-1188, 1st Cir.)
Beware of entering a modification agreement if you intend to challenge the transfer, ownership, or terms of a home loan! In this case, the agreement contained waiver terms and the consumer was held to have waived his rights by signing up for modification.