Grimes

Opinion by Judge NOONAN; Dissent by Judge MCKEOWN.

OPINION

Richard L. Grimes and Rosa L. Grimes (the Grimeses) appeal the judgment of the district court in favor of New Century Mortgage Corporation (New Century). The Grimeses brought suit against New Century for violation of the Truth in Lending Act, 15 U.S.C. § 1601 et seq. (TiLA) and Federal Reserve Regulation Z, 12 C.F.R. § 226.23 (a)(3) (Reg.Z) and for unfair business practices in violation of California Business and Professions Code § 17200 et seq. The district court granted summary judgment on the TiLA claim and declined to exercise jurisdiction on the California claim. Holding that there are material issues of fact as to the existence and terms of a contract, we reverse and remand to the district court.

FACTS

The facts presented by deposition do not appear to be in dispute. They are as follows:

On February 7, 2000, the Grimeses applied to New Century for a loan of $252,800 to be secured by their residence *1009 in San Francisco. Richard Grimes indicated that he was a manager employed by the City of San Francisco; his mother, Rosa, was retired on Social Security. An unpaid balance of $200,000 from Ameriquest at 9.75%…

Dissenting:

The Grimeses may indeed have been duped by an unethical loan officer. Whether they have a claim under the Truth in Lending Act (“TILA”) is another matter. TILA focuses on disclosure and does not serve as an umbrella statute for consumer protection in real estate transactions. Rather, TILA is designed to foster the informed use of credit by “assurfing] a meaningful disclosure of credit terms.” 15 U.S.C. § 1601 (a). Toward that end, in a credit transaction in which the creditor retains a security interest in the consumer’s principal dwelling, the consumer has the right to rescind the transaction “until midnight of the third business day following the consummation of the transaction or the delivery of the information and rescission forms ... together with a statement containing the material disclosures required.” Id. § 1685(a). The “material disclosures,” which must be made before credit is extended, include the amount financed, the finance charge, the annual percentage rate, total payments, the repayment schedule, and certain other disclosures and limitations not relevant here. 12 C.F.R. § 226.23 (a)(3) n. 48; 15 U.S.C. § 1638 (b).

The Grimeses do not claim that New…