Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Plaintiff filed mortgage foreclosure action, for adjustable rate home equity conversion martgage, which was a type of reverse mortgage insured by HUD, against bank, and bank filed counterclaim against Plaintiff alleging violations of Truth in Lending Act (TILA), seeking damages and rescission of loan transaction. Court properly dismissed counterclaim with prejudice. Bank is not entitled to rescission of loan transaction because it is not an obligor, as bank executed exculpatory clause expressly disclaiming any obligation under the note. TILA provides right of rescission only to the obligor of consumer credit transaction. (LAMPKIN, concurring; GORDON, dissenting.)