18(b); failing to make the terms “finance charge” and “annual percentage rate” more conspicuous than any other disclosure, in violation of 15 U.S.C. § 1632(a) and Regulation Z, § 226.17(a)(2); failing to provide a statement of the consumer‟s right to obtain, upon request, a written itemization of the amount financed, or fails to automatically disclose itemization of the amount financed, including amounts paid to other persons by the creditor on the consumer‟s behalf, with those persons identified, in violation of 15 U.S.C. § 1638(a)(2)(B) and Regulation Z, § 226.18(c); and failing to include a separate written itemization of the amount financed, including any amounts paid to other persons by the creditor on the consumer‟s behalf, specifically, public officials or government agencies, as required by Reg.

Rather, the plaintiff has alleged that any Truth in Lending violations occurred more than a year before the plaintiff filed suit on August 11, 2017 in Livingston Parish, and therefore her Truth in Lending claims are barred by the one-year statute of limitations19. The Defendant’s obligations under 15 U.S.C. § 1638, supra, include a requirement of annual statements itemizing the escrow account and cyclical statements each billing cycle regarding principal and interest. The Plaintiff has alleged that the Defendant has continuously failed to furnish her with any statements since 2011.

An ordinary consumer cannot be expected to decipher whether the Amended Complaint. 7 In addition, 15 U.S.C. § 1638(a)(8) and 12 C.F.R § 226.18(e) require lenders to provide a detailed explanation of the APR.

Section 1638(a) applies only to consumer credit transactions (which do not include PACE tax assessments) and it mandates that certain disclosures be made by a creditor (which Renovate America is not). 15 U.S.C. § 1638(a). Further, the disclosure requirements of Section 1638(b)(2)(B) only apply to extensions of credit secured by a consumer’s dwelling (which a PACE assessment is not).

While Defendant’s expert did not dispute the amount financed as calculated by Plaintiffs’ expert, material facts are in dispute that must be decided in order to determine whether the alleged discrepancy in the amount financed was apparent on the face of the documents provided. 15 U.S.C. § 1638(a)(2A) instructs lenders how to calculate the amount financed. As stated in § 1638(a)(2A)(ii), the lender must include charges that are not part of the finance charge or the Case 4:09-cv-00181-D Document 111 Filed 06/03/16 Page 6 of 11 7 principal amount of the loan and that are financed by the consumer, including charges excluded from the finance charge pursuant to § 1605.

.S.C. § 2605(e) .........................................................................................................................10 12 U.S.C. § 2605(e)(1)(B), (e)(1)(B)(ii)..........................................................................................10 12 U.S.C. § 2607..............................................................................................................................10 12 U.S.C. § 2614..............................................................................................................................10 15 U.S.C. § 1635(f)......................................................................................................................9, 15 15 U.S.C. § 1638 (a) ........................................................................................................................15 15 U.S.C. § 1638 (b)........................................................................................................................15 15 U.S.C. § 1638 (c) ........................................................................................................................15 15 U.S.C. § 1640(e) .....................................................................................................................9, 15 15 U.S.C. § 1641(e) .........................................................................................................................16 15 U.S.C. § 1641(f)(1)...............................................................................................................10, 15 15 USC § 1601...................................................................................................................................1 Cal. Civ. Code § 1691(b)...................................................................................................................6 Case 2:10-cv-02928-WBS-GGH Document 18 Filed 12/17/10 Page 7 of 26 681593.02/ 0317023 vii MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF DEFEND

Pursuant to 15 U.S.C. § 1638(a)(2)(A), the amount financed shall be computed as follows: (i) take the principal amount of the loan...; (ii) add any charges which are not part of the finance charge or of the principal amount of the loan and which are financed by the consumer, including the cost of any items excluded from the finance charge pursuant to section 1605; and Case 4:09-cv-00181-D Document 103 Filed 05/16/16 Page 1 of 4 2 (iii) subtract any charges which are part of the finance but which will be paid by the consumer before or at the time of the consummation of the transaction, or have been withheld from the proceeds of the credit. 15 U.S.C. § 1638(a)(2)(A). The Truth in Lending Disclosure Statement, at issue here, disclosed the amount financed as $507,473.43.

The statute requires, among other things, disclosure of finance charges, the “cost of credit as a yearly rate,” and information about adjustable interest rates. See 15 U.S.C. § 1638(a); 12 C.F.R. § 226.18(e) (“Regulation Z”). “An adjustment to the interest rate with or without a corresponding adjustment to the payment in a variable-rate transaction … is an event requiring new disclosures to the consumer.”

t (i5 U.S.C. 1637a(a)(2)(G)) is amended by inserting before the semicolon “, or a statement that the monthly payment may increase or decrease significa ntly due to increases in the annual percentage rate”. (b) TECHNICAL AND CONFORMING AMENDMENT.—S ection 127A(b)(3} of the Truth in Lending Act (15 U.S.C. 1637a(b)(3)) is amended by striking “required under” and inserting “referred to in”. (c) ALTERNATIVE TO HISTORICAL ExXaMPLE.—Sec tion 128(a) of the Truth in Lend- ing Act (15 U.S.C. 1638(a)) is amended by inse rting at the end the following new paragraph: 023 7 “(14) In any variable rate transaction secured by the consumer's principal dwelling with a term greater than 1 year, at the creditors’ option, a statement that the monthly payment may increase or decrease substantially, or a histori- cal exampleillustrating the effects of interest rate changes implemented accord- ing to the loan program.”. (d) ENSURING HONORING OF LOCK-IN PROMISES.—Section 128(b) of the Truth in Lending Act (15 U.S.C. 1638(b)) is amended by adding at the end the following new paragraph: “(3) In the case of a residential mortgage transaction, the disclosures under sub- section (a) shall include the following: “(A) The note rate and points, and a statement, if applicable, that these terms are subject to change. “(B) A statement that the creditor must include the disclosed note rate and points in the credit agreement unless, in relation to either or both of those terms— “(i) the disclosure clearly and conspicuously indicates that the term is subject to change, or Gi) in the case of any term to which clause(i) does not apply— “() the creditor has clearly and conspicuously indicated that the term is conditioned on closing the transaction within a prescribed time; “(I) the creditor has promptly and clearly communicated to the consumerthe information and documentation that the consumeris re- quired to provide to the creditor; and “(Ithe consumer has failed to provide such information and docu- mentation within a

Under TILA, a “creditor shall disclose... [t] he number, amount, and due dates or period of payments scheduled to repay the total of payments.” 15 U.S.C. § 1638(a)(6). Regulation Z, which implements TILA, states that a creditor must disclose a payment schedule describing “[t]he number, amounts, and timing of payments scheduled to repay the obligation.”