As Congress pushed to adjourn Oct. 7, mortgage lenders were mounting a full-court press to reverse through legislation a court decision that, unless rendered moot, could force lenders to rescind many mortgage- based loans.
The provision would render moot a court decision now known generically as Rodash. The decision in Rodash vs. AIB Mortgage Co., No. 93- 4125, by the 11th Circuit Court of Appeals in Atlanta basically held that a $22 Federal Express charge for carrying a payoff of a pre-existing mortgage, and a $204 Florida intangibles tax assessed and collected at the time of a loan and passed through to the borrower at settlement were both finance charges under the Truth In Lending Act. As such, a panel of the court ruled, they needed to be disclosed under that category in making home equity loans.