N O T FO R PUB L ICAT IO N UNITED STATES C OUR T OF APPEALS FOR THE NINTH C IR C UIT
TIM OTHY B AR

NES, Pla i ntiff-Appe lla

nt,
v. C HASE HOM E FINANC E, LLC , a De la ware c o rporation; C HASE B ANK USA, N.A., a

subsidia ry of JP M orga

n C ha se & C o., a

De la ware c orporation; IB M LENDER

B USINESS PR OC ESS SER VIC ES, INC ., a

De la ware c orporation; FEDER AL NATIONAL M O R TGAGE ASSOC IATION,

De fe nda n ts-Appe lle e s. No. 13-35716 D.C . No. 3:11-c v-00142-PK
M EM O R ANDUM *

Appe a l from

the Unite d

Stat e s Distric t C ourt for the Distric t of Ore gon Anna J. B rown, Distric t Judge , Pre s iding Argue d a nd Subm itte d M ay

10, 2017 Portla nd, Ore gon 

# FIL ED AUG 10 2017 M O LLYC. DW Y ER, CLERK U. S. CO URT O F APPEALS

* This disposition is not a ppropria te for public at ion a

nd is not pre c e de nt e xc e pt a s provide d

by Ninth C irc uit R

ule 36-3.B e fore : B YB EE a n d HUR W ITZ, C irc u it Judge s, a

nd R AKOFF, ** Distric t Judge
. Tim othy B arne s m a ile d a

notic e tha

t he wa s e xe rc ising his right to re sc ind his m ortga ge to his c re d itor, C h a se B a nk USA, N.A. (C B USA), and the loa n
se rvic e rs to whic h he ha d be e n m ak ing m onthly

pa ym e nts, C ha se Hom e Fina nc e , LLC (C HF) and la

te r IB M Le nde r B u sine ss Proc e ss Se rvic e s, Inc . (LB PS). For
re a s ons tha

t a re unc l e ar from

the re c ord, the le tte r to the c re ditor wa s re turne d to B arne s unde live re d. The loa n wa s not re sc inde d , a

nd B a rne s brought suit for
re sc ission a

nd viola tion of theTruth in Le nding Ac t (TILA), 15 U.S.C
. § 1601 e t
se q. , a n d its re quire m e nts re ga

rding re sc ission proc e dure s a g a inst C B USA, C HF,
and LB PS. 1 The distric t c ourt gra nte d the de fe n da

nts’ m otion for sum

m ary judgm e nt. B e c a

u se notic e of re sc ission wa s prope rly give n, we va c ate the grant of

* * The Honora

ble Je d S. R akoff, Se n ior Unite d State s Distric t Judge for the Southe rn Distric t of Ne w York, sitting by de signa t ion. 1 The Fe de ra l Nationa l M ortga ge Assoc iation (Fa nnie M a e ) wa s la

te r a dde d a s a de fe nda

n t in a n am e nde d c om

pla int. 2sum

m ary judgm e nt on B arne s’ s c la im s for re sc i ssion a nd fa ilure to e ffe c t
re sc ission a

nd re m and for furthe r proc e e dings. 2 1. A borrowe r m a

y re sc i nd a

loa n within thre e y e ars of the loa n transa c tion if thec re ditor fa ils to provide spe c i fic disc losure s re quire d by TILA. Se e 15 U.S.C . § 1635(f); 12 C .F.R . § 226.23(a)(3). To e xe rc ise tha t right, a borrowe r m

ust “ n otify [] the c re ditor, in a c c orda nc e with re gula

tions of theB ure a

u, of his inte ntion to do so.” 15 U.S.C . § 1635(a ); se e also J e sinosk i v . C ountryw ide HomeLoans, Inc
. , 135 S. C t. 790, 792 (2015) (“ [R ] e sc ission is e ffe c te d whe n the borrowe r notifie s the c re ditor of his inte n tion to re sc ind.” ). TILA’ s c ore im ple m e nting re gula

tion, known a s R e gula

t ion Z, outline s furthe r de t a ils on how the b orrowe r is to e x e rc ise the right to re sc i nd. Se e 12 C .F.R . § 226(a ). Spe c ific a lly , C onsum e r Fina nc i a l Prote c tion B ure a

u (C FPB ) Offic ia l Sta ff C om m e nta ry to R e g ulation Z provide s: “ Whe re the c re ditor fa ils to provide the
c onsum e r with a

de signa te d a ddre ss for se nding thenotific ation of re sc ission, de live ry of the notific ation to the

pe rson or a ddre ss to whic h the c onsum e r ha s

2 Fannie M a e be c a

m e a c re d itor a fte r the thre e -y e a r sta tute of re pose date pa sse d. Any

c la im a ga inst C B USA c a

n be brought a ga i nst Fa

nnie M a e a s an a ssigne e of C B USA’ s inte re st, a nd should not ha

ve be e n be dism isse d. Se e 15 U.S.C . § 1641(c ) (“ A ny c onsum e r who ha s the right to re sc ind a tra n sa c tion unde r se c t ion 1635 of this title

m ay re sc ind the transa c tion a s a ga inst a ny a ssigne e of the obliga tion.” ). 3be e n dire c te d to se nd pa ym e nts c onstitute s de live ry to the c re d itor or a ssigne e .” 12 C .F.R . § 226, Supp. I, pa

ra . 23(a )(2); Truth in Le nding, 69 Fe d. R e g. 16,769-03, 16,771 (M a

r. 31, 2004). B arne s atte m

pte d to notify both thec re ditor, C B USA, a nd the se rvic e r, C HF, of his inte nt to re sc ind by m a iling le tte rs to the a ddre sse s the y ha d provide d

him
. C B U SA “ fa il[e d] to provide[B arne s] with a de signa te d a ddre ss for se nding the notific ation of re sc ission”be c a use the a d dre ss it did provide wa s not suc c e ssfully
re c e iving m a il whe n B arne s se nt his notic e the re . S e e12 C .F.R
. § 226, Supp. I, pa ra s. 15(a )(2), 23(a )(2). The only re m a ining a c tion for B a

rne s to ta ke , pe r R e gula tion Z a nd the C FPB Offic ia l Sta ff C om m e nta ry , wa s to notify

the se rvic e r, whic h he ha d

a lre a dy done . B arne s’ s le tte r to C HF the re fore provide d suffic ie nt notic e to C B U SA that he wa s e xe rc ising his right to re sc ind. 2. The re re m a in dispute d issue s of fa c t wa rran ting re ve rsa l of sum

m ary judgm e nt for the c la im s a ga inst thede fe nda nts for fa ilure to e ffe c t re sc i ssion in
a c c orda nc e with TILA’ s re quire m e nts. B e c a use the re sc ission notic e wa s tim e ly provide d, fa ilure to c o m

ply with there quire m e n ts in 15 U.S.C
. § 1635(b) within 20 da y s is a c tiona

ble unde r 15 U.S.C . § 1640(a ). B arne s’ s c la im for dam a ge s , a de c la ra tory judgm e n t , a

nd injunc tive re lie f for fa ilure to e ffe c t re sc ission following

4tim e ly

notic e of inte nt to re sc ind a ga i nst C B USA and Fa nnie M a e we re thus im prope rly dism isse d on sum

m ary judgm e nt by

the distric t c ourt. B arne s a lso a

rgue s tha t C HR and LB PS are lia

b le for fa ilure to re sc ind ba se d on the the ory

tha t the y are a ssigne e s. Due to the la c k of c la rity in the re c ord on the
re lationship be twe e n the le nde rs a nd the se rvic e rs, B arne s ha s e s ta blishe d a ge nuine d ispute a s to m ate ria l fa c t on this que stion suffic ie nt to survive sum m ary judgm e nt. 3. B arne s a

rgue s tha t the se rvic e rs, C HF and LB PS, are lia ble unde r 15 U.S.C . § 1640(a ) for fa ilure to providere que ste d inform at ion a bout thec re ditor unde r § 1641(f)(2) (“ Upon writte n re que st by the obligor, the se rvic e r sha ll provide the o bligor, to the

be st knowle dge of the se rvic e r, with thenam e , a ddre ss, a nd te le phone num

b e r of the owne r of the obliga tion or them a s te r se rvic e r of the obliga tion.” ). B arne s re que ste d inform at ion a bout thenam e , a ddre ss, a nd te le phone num

b e r of the c re ditor from

C HF an d LB PA, and the re c ord is not c le ar whe the r he a c tua lly

re c e ive d it. B e c a

use B arne s ha s ra ise d

a ge nuine issue of
m ate ria l fa c t re ga

rding c om

plia nc e with TILA, the

distric t c ourt e rre d

in gra nting
sum m ary judgm e nt on this issue
. V ACAT E D AND RE M ANDE D.

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