Seeking to preempt a flood of new suits, industry lawyers are urging the federal appeals court in New Orleans to reverse a controversial Truth- in-Lending Act decision.

The ruling last month by a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit found that a company buying a loan from a broker is actually the loan's originator. This means the buyer is liable for any violation of disclosure law made by a broker, even if the error was not readily apparent.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.