Federal Debtor Protection Laws Preempt State Protections
In Silvas v. E*Trade Mortgage Corp., the Ninth Circuit upheld the dismissal of claims violations of the a Truth in Lending Act predicated on claimed violations of California’s Unfair Competition Law resulting from a refusal to refund a fee charged to lock in an interest rate after the borrowers rescinded the mortgage within the 3 day period.. The Court held the state laws were preempted by the regulations of the Office of Thrift Supervision and Home Owner’s Loan Act.
