Nos. 04-3690 & 04-4042 VERNON HANDY, Administrator of the Estate of Geneva H. Handy, Plaintiff-Appellant, v. ANCHOR MORTGAGE CORPORATION and COUNTRYWIDE HOME LOANS, INC., Defendants-Appellees. ____________ Appeals from the United States District Court for the Northern District of Illinois, Eastern Division. No. 02 C 1401—Wayne R. Andersen, Judge. ____________ ARGUED APRIL 6, 2006—DECIDED SEPTEMBER 29, 2006 ____________

Before BAUER, WOOD, and SYKES, Circuit Judges. WOOD, Circuit Judge. In 2000, Geneva Handy obtained a new mortgage on her home from Anchor Mortgage Corporation. As anyone who has taken out such a loan is doubtless aware, such a transaction requires a strong wrist and a good pen to sign a bevy of forms and documents. Many of these forms are required by the Truth in Lending Act (TILA), 15 U.S.C. § 1601 et seq., one of whose require- ments is at issue in this case: that a creditor clearly disclose to a borrower her right to rescind the loan within three days and provide the borrower with an appropriate form to 2 Nos. 04-3690 & 04-4042 accomplish the rescission. Id. at § 1635(a). If the creditor fails to do so, the period within which the borrower may rescind the loan is extended from three days to up to three years. Id. at § 1635(f); Carmichael v. The Payment Center, Inc., 336 F.3d 636, 643 (7th Cir. 2003). Two years after completing her transaction with Anchor, Handy sought to rescind the loan (which had by that time been assigned to Countrywide Home Loans, Inc.), based on Anchor’s alleged violation of TILA’s disclosure requirements. At the closing, it had given her two different rescission forms, one of which was inappropriate for her loan. The district court denied Handy’s claim, explaining that although Anchor “obviously [ ] made a mistake” by giving Handy two different forms, both forms provided her with adequate notice of her right to rescind. We now reverse.

I Prior to obtaining the loan from Anchor, Handy held a 30- year variable rate mortgage on her home that was serviced by a company known as Homecomings. In September 2000, Anchor extended Handy a 15-year fixed rate loan of $80,500, approximately $75,000 of which went toward paying off the prior mortgage. On September 18, 2000, Handy attended the closing of the Anchor loan at a title company’s office. On September 22, 2000, Handy returned to the title company’s office to sign additional papers relating to the loan. Over the course of these two sessions, Handy was given five rescission forms. Four of these forms were identical. These forms, titled “NOTICE TO CANCEL—REFINANCE,” stated: YOUR RIGHT TO CANCEL: You are entering into a new transaction to increase the amount of credit previously provided to you. Your Nos. 04-3690 & 04-4042 3

home is the security for this new transaction. You have a legal right under federal law to cancel this new transaction, without cost, within THREE BUSINESS DAYS. . . . If you cancel this new transaction, it will not affect any amount that you presently owe. Your home is the security for that amount. In contrast, the fifth form, titled simply “NOTICE OF RIGHT TO CANCEL,” stated: YOUR RIGHT TO CANCEL: You are entering into a transaction that will result in a mortgage, lien, or security interest on/in your home. You have a legal right under federal law to cancel this transaction, without cost, within three (3) business days. . . . If you cancel the transaction, the mortgage, lien, or, security interest is also cancelled. . . . Handy did not seek to rescind the Anchor loan within three days. Instead, two years la