Dirk Beukes; Gesina Beukes, individuals, Plaintiffs - Appellants,
GMAC Mortgage, LLC, as Successor in Interest to Homecomings Financial, LLC; Mortgage Electronic Registration Systems, Inc., a Delaware Corporation; Federal National Mortgage Association; John & Jane Does, 1-10, Defendants - Appellees
Submitted: March 11, 2014.
Appeal from United States District Court for the District of Minnesota - Minneapolis.
For Dirk Beukes, Gesina Beukes, individuals, Plaintiffs - Appellants: Michael J. Keogh, Keogh Law Office, Saint Paul, MN.
For GMAC Mortgage, LLC, as Successor in Interest to Homecomings Financial, LLC, Mortgage Electronic Registration Systems, Inc., a Delaware Corporation, Federal National Mortgage Association, Defendants - Appellees: Donald G. Heeman, Ryan Allan Olson, Felhaber & Larson, Minneapolis, MN.
Before COLLOTON, SHEPHERD, and KELLY, Circuit Judges.
COLLOTON, Circuit Judge.
Dirk and Gesina Beukes sued GMAC Mortgage, LLC, Mortgage Electronic Registration Systems, Inc. (" MERS" ), Federal National Mortgage Association, and a number of unnamed defendants. The Beukeses sought to rescind a mortgage loan transaction pursuant to rights granted by the Truth in Lending Act, 15 U.S.C. § 1635(a). They also sought damages under 15 U.S.C. § 1640 for alleged violations of the Act.
The district court granted summary judgment for the defendants and dismissed the action. We held the Beukeses' appeal pending the Supreme Court's decision in Jesinoski v. Countrywide Home Loans, Inc., 135 S.Ct. 790, 190 L.Ed.2d 650 (2015), which addressed one of two alternative grounds cited by the district court. Although Jesinoski undermines the district court's first reason for granting summary judgment, we conclude that the second ground justified the dismissal, and we therefore affirm.
The Truth in Lending Act provides that when a borrower in a mortgage loan transaction grants a security interest in her principal dwelling, the borrower has a right to rescind the transaction until the third business day after the transaction is consummated or the lender delivers information and disclosures required by the Act, whichever is later. 15 U.S.C. § 1635(a). Even if the lender never makes the required disclosures, however, the borrower's right to rescind expires three years after the date of consummation of the transaction. Id. § 1635(f).
The Beukeses entered into a mortgage loan transaction on September 28, 2007, to refinance a loan of $247,000 secured by their residence. The lender, Homecomings Financial, LLC, disclosed a finance charge, as required by 15 U.S.C. § 1638(a)(3), on that date. The Beukeses contend that the disclosure was inaccurate, such that they never received the disclosures required by the Act.
On January 21, 2010, the Beukeses mailed a notice of rescission to Homecomings Financial and to its successor-in-interest, GMAC Mortgage, LLC. GMAC refused to rescind the loan. After the Beukeses failed to make payments on the loan, MERS (as nominee for the lender) published on March 18, 2010, the first of six notices of a mortgage foreclosure sale of the ...