15 U.S.C. § 1641

Liability of assignees

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(a) Prerequisites

Except as otherwise specifically provided in this subchapter, any civil action for a violation of this subchapter or proceeding under section 1607 of this title which may be brought against a creditor may be maintained against any assignee of such creditor only if the violation for which such action or proceeding is brought is apparent on the face of the disclosure statement, except where the assignment was involuntary. For the purpose of this section, a violation apparent on the face of the disclosure statement includes, but is not limited to (1) a disclosure which can be determined to be incomplete or inaccurate from the face of the disclosure statement or other documents assigned, or (2) a disclosure which does not use the terms required to be used by this subchapter.

(b) Proof of compliance with statutory provisions

Except as provided in section 1635(c) of this title, in any action or proceeding by or against any subsequent assignee of the original creditor without knowledge to the contrary by the assignee when he acquires the obligation, written acknowledgement of receipt by a person to whom a statement is required to be given pursuant to this subchapter shall be conclusive proof of the delivery thereof and, except as provided in subsection (a), of compliance with this part. This section does not affect the rights of the obligor in any action against the original creditor.

Any consumer who has the right to rescind a transaction under section 1635 of this title may rescind the transaction as against any assignee of the obligation.

(d) Rights upon assignment of certain mortgages(1) In general

Any person who purchases or is otherwise assigned a mortgage referred to in section 1602(aa) 11 See References in Text note below. of this title shall be subject to all claims and defenses with respect to that mortgage that the consumer could assert against the creditor of the mortgage, unless the purchaser or assignee demonstrates, by a preponderance of the evidence, that a reasonable person exercising ordinary due diligence, could not determine, based on the documentation required by this subchapter, the itemization of the amount financed, and other disclosure of disbursements that the mortgage was a mortgage referred to in section 1602(aa) 1 of this title. The preceding sentence does not affect rights of a consumer under subsection (a), (b), or (c) of this section or any other provision of this subchapter.

(2) Limitation on damagesNotwithstanding any other provision of law, relief provided as a result of any action made permissible by paragraph (1) may not exceed—(A) with respect to actions based upon a violation of this subchapter, the amount specified in section 1640 of this title; and(B) with respect to all other causes of action, the sum of—(i) the amount of all remaining indebtedness; and(ii) the total amount paid by the consumer in connection with the transaction.(3) Offset

The amount of damages that may be awarded under paragraph (2)(B) shall be reduced by the amount of any damages awarded under paragraph (2)(A).

(4) Notice

Any person who sells or otherwise assigns a mortgage referred to in section 1602(aa) ¹ of this title shall include a prominent notice of the potential liability under this subsection as determined by the Bureau.

(e) Liability of assignee for consumer credit transactions secured by real property(1) In generalExcept as otherwise specifically provided in this subchapter, any civil action against a creditor for a violation of this subchapter, and any proceeding under section 1607 of this title against a creditor, with respect to a consumer credit transaction secured by real property may be maintained against any assignee of such creditor only if—(A) the violation for which such action or proceeding is brought is apparent on the face of the disclosure statement provided in connection with such transaction pursuant to this subchapter; and(B) the assignment to the assignee was voluntary.(2) Violation apparent on the face of the disclosure describedFor the purpose of this section, a violation is apparent on the face of the disclosure statement if—(A) the disclosure can be determined to be incomplete or inaccurate by a comparison among the disclosure statement, any itemization of the amount financed, the note, or any other disclosure of disbursement; or(B) the disclosure statement does not use the terms or format required to be used by this subchapter.(f) Treatment of servicer(1) In general

A servicer of a consumer obligation arising from a consumer credit transaction shall not be treated as an assignee of such obligation for purposes of this section unless the servicer is or was the owner of the obligation.

(2) Servicer not treated as owner on basis of assignment for administrative convenience

A servicer of a consumer obligation arising from a consumer credit transaction shall not be treated as the owner of the obligation for purposes of this section on the basis of an assignment of the obligation from the creditor or another assignee to the servicer solely for the administrative convenience of the servicer in servicing the obligation. Upon written request by the obligor, the servicer shall provide the obligor, to the best knowledge of the servicer, with the name, address, and telephone number of the owner of the obligation or the master servicer of the obligation.

(3) “Servicer” defined

For purposes of this subsection, the term “servicer” has the same meaning as in section 2605(i)(2) of title 12.

(4) Applicability

This subsection shall apply to all consumer credit transactions in existence or consummated on or after September 30, 1995.

(g) Notice of new creditor(1) In generalIn addition to other disclosures required by this subchapter, not later than 30 days after the date on which a mortgage loan is sold or otherwise transferred or assigned to a third party, the creditor that is the new owner or assignee of the debt shall notify the borrower in writing of such transfer, including—(A) the identity, address, telephone number of the new creditor;(B) the date of transfer;(C) how to reach an agent or party having authority to act on behalf of the new creditor;(D) the location of the place where transfer of ownership of the debt is recorded; and(E) any other relevant information regarding the new creditor.(2) Definition

As used in this subsection, the term “mortgage loan” means any consumer credit transaction that is secured by the principal dwelling of a consumer.

(Pub. L. 90–321, title I, § 131, May 29, 1968, 82 Stat. 157; Pub. L. 96–221, title VI, § 616(a), Mar. 31, 1980, 94 Stat. 182; Pub. L. 103–325, title I, § 153(c), Sept. 23, 1994, 108 Stat. 2195; Pub. L. 104–29, § 7, Sept. 30, 1995, 109 Stat. 274; Pub. L. 111–22, div. A, title IV, § 404(a), May 20, 2009, 123 Stat. 1658; Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.)Editorial NotesReferences in Text

Section 1602(aa) of this title, referred to in subsec. (d)(1), (4), was redesignated section 1602(bb) of this title by Pub. L. 111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107.

Amendments

2010—Subsec. (d)(4). Pub. L. 111–203 substituted “Bureau” for “Board”.

2009—Subsec. (g). Pub. L. 111–22 added subsec. (g).

1995—Subsec. (e). Pub. L. 104–29, § 7(a), added subsec. (e).

Subsec. (f). Pub. L. 104–29, § 7(b), added subsec. (f).

1994—Subsec. (d). Pub. L. 103–325 added subsec. (d).

1980—Pub. L. 96–221 added subsecs. (a) and (c), designated existing provisions as subsec. (b), substituted “excepted as provided in subsection (a)” for “unless the violation is apparent on the face of the statement”, and struck out exception for actions under section 1640(d) of this title.

Statutory Notes and Related SubsidiariesEffective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

Effective Date of 1980 Amendment

Amendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all regulations, forms, and clauses required to be prescribed to be promulgated at least one year prior to such effective date, and allowing any creditor to comply with any amendments, in accordance with the regulations, forms, and clauses prescribed by the Board prior to such effective date, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title.

Notes of Decisions

Cited in 526 cases (108 in the last 5 years), 1972–2026 · leading case: Jackson v. South Holland Dodge, Inc., 755 N.E.2d 462 (Ill. 2001).

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Jackson v. South Holland Dodge, Inc., 755 N.E.2d 462 (Ill. 2001). · cites it 10× “See 15 U.S.C. § 1641 (a) (1994); Taylor v. Quality Hyundai, Inc.”

Cooper v. First Gov't Mortg. & Investors Corp., 238 F. Supp. 2d 50 (D.D.C. 2002). · cites it 12× “15 U.S.C. § 1641 . Assignee liability regarding non-HOEPA transactions under TILA is limited to violations that are apparent on the face of the disclosure statement.”

Ellis v. Gen. Motors Acceptance Corp., 160 F.3d 703 (11th Cir. 1998). · cites it 8× “The district court dismissed the complaint on the grounds that the statute of limitations had expired and, alternatively, that under 15 U.S.C. § 1641 , GMAC was exempted from liability under TILA.”

Mitchell v. Residential Funding Corp., 334 S.W.3d 477 (Mo. Ct. App. 2011). · cites it 9× “2006) (citing 15 U.S.C. § 1641 (d)). In enacting this provision, “Congress intended to place the increased burden of inquiring into the legitimacy of the lending practices engaged in by the original lender upon the assignees of HOEPA loans.”

Jarvis v. South Oak Dodge, Inc., 773 N.E.2d 641 (Ill. 2002). · cites it 6× “) 15 U.S.C. § 1641 (a) (2000). Although section 1641(a) expressly refers only to assignees of a "creditor," the Consumer Leasing Act makes section 1641(a) applicable to assignees of a "lessor.”

Christine Marais v. Chase Home Fin. LLC, 736 F.3d 711 (6th Cir. 2013). · cites it 6× “alleging] claims for violation of [TILA], 15 U.S.C. § 1641 (f)(2), [RESPA], 12 U.S.”

Renee McCray v. Fed. Home Loan Mortg., 839 F.3d 354 (4th Cir. 2016). · cites it 8× “” In dismissing McCray’s TILA claim against Freddie Mac for failing to provide notice that it had purchased her loan, in violation of 15 U.S.C. § 1641 (g), the court noted that the cause of action was not created by Congress until 2009, and the complaint, which described a 2005…”

Jenkins v. JPMorgan Chase Bank, N.A., 216 Cal. App. 4th 497 (Cal. Ct. App. 2013). · cites it 3× “( 15 U.S.C. § 1641 (g).) The notice must be provided “not later than 30 days after the date on which [the] mortgage loan is sold or otherwise transferred or assigned to [the new owner or assignee].”

Bryant v. Mortg. Capital Resource Corp., 197 F. Supp. 2d 1357 (N.D. Ga. 2002). · cites it 13× “See 15 U.S.C. § 1641 (d)(1). 4 1. MCR’s Alleged Fraudulent Scheme Plaintiffs assert that MCR engaged in a predatory lending scheme by issuing HOEPA loans 5 to consumers with good overall credit without complying with the disclosures provisions laid out in TILA.”

Fowler v. U.S. Bank, Nat'l Ass'n, 2 F. Supp. 3d 965 (S.D. Tex. 2014). · cites it 11× “The second under 15 U.S.C. § 1641 (g) involves Defendants’ alleged failure to notify Plaintiffs when the mortgage was assigned to U.”

Johnson v. Thomas, 794 N.E.2d 919 (Ill. App. Ct. 2003). · cites it 6× “An assignee of a creditor is also liable for a creditor’s failure to provide the required disclosures when the TILA violation “is apparent on the face of the disclosure statement.”

Short v. Wells Fargo Bank Minnesota, NA, 401 F. Supp. 2d 549 (S.D.W. Va 2005). · cites it 10× “They also argue that Wells Fargo, as an assign-ee of the Note, cannot be held liable for any claims by plaintiff stemming from the origination of the loan pursuant to 15 U.S.C. § 1641 (e). With regard to the claims against Countrywide in Counts I and II, they argue that…”

Show all 526 citing cases →

— 15 U.S.C. § 1641(a) — 4 cases

Wallis v. Indymac Fed. Bank, 717 F. Supp. 2d 1195 (W.D. Wash. 2010).

Pinder v. Lomas & Nettleton Co. (In Re Pinder), 83 B.R. 905 (Bankr. E.D. Pa. 1988).

Bank of New York Mellon v. Koch, 2023 IL App (2d) 220048-U (Ill. App. Ct. 2023).

Perkins v. Beltway Capital, LLC, 30 Pa. D. & C.5th 371 (2013).

— 15 U.S.C. § 1641(f)(2) — 1 case

Lucien v. Fed. Nat'l Mortg. Ass'n, 21 F. Supp. 3d 1379 (S.D. Fla. 2014).

— 15 U.S.C. § 1641(g) — 6 cases

Peter Zeppeiro v. Gmac Mortg., LLC, 662 F. App'x 500 (9th Cir. 2016).

Michael Fazio v. Washington Mut. Fa, 713 F. App'x 671 (9th Cir. 2018).

Sage v. HSBC Bank USA Nat'l Ass'n (N.D.N.Y. 2021).

Jacobs v. Alabama Hous. Fin. Auth. (W.D. Wash. 2021).

Scott Burkley a/k/a Scott Berkley v. US Bank NA, Tr. for LSF9 Participation Trust, Ocwen Loan Servicing LLC, First Nat'l Realty Inc., LSF9 Participation Trust, & Glen Hardy (Miss. Ct. App. 2020).

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