EquiCredit Corporation of N.Y., Appellant, v Luis A. Turcios et al., Respondents, EquiCredit Corporation of America et al., Appellants, et al., Defendants. (Index No. 12938/00), 300 A.D.2d 344

Summary

A mortgagee filed a foreclosure action against two Spanish-speaking mortgagors, and the mortgagors responded with counterclaims alleging that the mortgage and others had violated the ECOA and the Fair Housing Act (FHA), 42 U.S.C.S. § 3605, by engaging in a form of predatory lending called "reverse redlining." The mortgagors also claimed that the mortgagee violated the Truth In Lending Act (TILA), 15 U.S.C.S. § 1601 et seq., because it made TILA disclosures in English. The appellate court held that (1) the mortgagors did not establish a prima facie case with regard to their counterclaims alleging violations of the ECOA and the FHA because their counterclaims were based on the claim that they did not qualify for the loans in question; (2) there was no basis in law for requiring that TILA disclosures under 15 U.S.C.S. § 1638 be made to borrowers who read, wrote, and spoke only Spanish be made in Spanish to ensure that the disclosures were meaningful; and (3) the mortgagee's action was not...