Revisiting TILA rescission through the lens of an Illinois Land Trust

Today with Bill Paatalo we will discuss the Illinois Supreme Court case of Financial Freedom Acquisition LLC (One West Bank, N.A., Appellee) v. Standard Bank and Trust Co et al., Appellant. This case has many elements of interest to our listeners, and established the following legal points:  1. Illinois Land Trusts can be treated as consumers for purposes of the TILA rescission statute;  2. An Obligor to a TILA transaction need not be the same entity or person as the consumer-borrower, the latter of whom is the party to whom credit is extended--it is the Obligor who has and retains the right to rescind under TILA;  3. Reverse mortgages are by definition consumer credit transactions, an implication of which--to be discussed today on the Show--but not addressed in the IL Supreme Court opinion--is that insitutional Defendants who sometimes escape rescission claims through claiming mortgages are not consumer credit transactions--will be barred from so escaping when the mortgage at issue is a reverse mortgage. 4. When certain issues on appeal are not part of a lower court order involving the ending of the lower court case, they may be raised and discussed, on appeal, notwithstanding being absent from the lower court order.  Go to Neil's Blog for more on this case and to get a copy of the case.  Also time permitting we will revisit the Cashmere Valley Bank case recently discussed on Neil's Show.