Still Crazy after All These Years: The Absolute Assignment of Rents in Mortgage Loan Transactions

This Article explores the problems arising from the use of the absolute assignment of rents in mortgage loan transactions, which have continued for over a century, as well as possible solutions. Rents are a significant part of the security for loans secured by income-producing properties such as office buildings, shopping centers, and apartments. Under present law in many states, the absolute assignment of rents is the only means by which lenders can create an effective security interest in rents of mortgaged property. An absolute assignment of rents purports to transfer title to rents to the mortgage lender although in substance it creates a security interest in rents. The Article explores the historical development of the absolute assignment of rents and discusses the confusion, unnecessary litigation, and even injustice that it causes under state law and in bankruptcy. The National Conference of Commissioners on Uniform State Laws has recently approved the new Uniform Assignment of Rents Act, which removes the necessity for absolute assignments of rents by creating a workable and comprehensive scheme for the creation of security interests in rents. The Article concludes by discussing the Act and recommending its adoption

Home Equity Loans in Texas: Maintaining the Texas Tradition of Homestead Protection

This Article examines home equity financing in Texas, focusing on how continued protection of the homestead shelters Texas homeowners from problems experienced by some homeowners in other states. In Part I of the Article, I briefly explore the history of homestead protection and home equity loans in Texas, a subject on which Joe McKnight literally wrote the book. In Part II, I discuss the growth of home equity loans in other states, the reasons for their popularity, and the problems that have arisen for homeowners who have been victimized by predatory lenders. Part III examines the constitutional amendment that ultimately permitted home equity lending in Texas, focusing on the consumer protection requirements of the provision and how they are aimed at preventing predatory lending practices. In Part IV, I discuss criticism aimed at the amendment and problems that have arisen in interpreting and applying it. Part V discusses the limited legislative response to these issues and the court cases interpreting the amendment. In the Conclusion, I address the criticisms of the constitutional provision and defend its consumer protection measures

A Comparative Analysis of Mortgage Loan Assignments and a Call for Reform in the United States

The flow of capital into mortgage loans depends heavily on the ability to transfer those loans. In the United States, Germany, and other countries, mortgage loans are transferred on the secondary market. A loan originator may sell loans to a purchaser who intends to hold the loans and collect payments or to a third party who will pool the loans and issue mortgage-backed securities to investors.In the United States, assignments of mortgage loans have created legal challenges and have been the subject of much litigation. The transfer and storage of large volumes of paper promissory notes, still the prevailing method of evidencing mortgage loans in the United States, is cumbersome, expensive, and subject to error. In addition, recordation of mortgage assignments in the real property records of the county in which mortgaged property is located is time-consuming and expensive. Furthermore, confusion and conflicts in the law governing mortgage loan assignments exist because the loans involve both real and personal property, which are subject to different legal rules, and because of a lack of uniformity in the law of the various states.In Parts I and II of this article, the Author reviews the basic mortgage loan transaction and the law applicable to mortgage loan assignments under American and German law. In Part III, she compares American and German law, focusing on those issues in the assignment of mortgage loans that have been troublesome in the United States. Finally, she draws conclusions from these comparisons and recommends reform in the United States.The chapter is written for a Festschrift dedicated to Professor Dr. Werner Ebke. This is a draft. Final version is published in FESTSCHRIFT FOR WERNER F. EBKE -- GERMAN, EUROPEAN, AND COMPARATIVE BUSINESS LAW 239 (C.H. Beck Verlag 2021)

Queer Connections: Cultural Transmission and Intergenerational Relationships in the 2SLGBTQIA+ Community

Cultural transmission is the process by which cultural knowledge, norms, and values are shared, typically from one generation to the next. In cultural groups like the 2SLGBTQIA+ community in the Greater Toronto and Hamilton Area, intergenerational relationships between community members may not be inherent. To understand how cultural transmission occurs within this community and the effect of intergenerational relationships, or a lack thereof, on this process, individual community members and experts working within the community were interviewed about their lived experiences and observations. The findings of the study demonstrate that intergenerational relationships are highly valued and sought out by 2SLGBTQIA+ people, but current barriers need to be addressed so they and other diverse relationships can be fostered more inclusively within the community

Still Mortgaging the American Dream: Predatory Lending, Preemption, and Federally-Supported Lenders

This article discusses the continuing problem of predatory lending abuses in the subprime home mortgage lending market and federal and state attempts to address the problem. Over the protests of consumer advocates, federal agencies have recently issued regulations preempting state predatory lending statutes as applied to national banks and thrifts. In addition, Congress is considering legislation that would preempt state predatory lending laws for all lenders. The article considers the preemption debate, particularly in the context of federally-supported lenders–banks, thrifts, and the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac. Banks and thrifts receive support through the federal safety net, which includes deposit insurance. Fannie Mae and Freddie Mac are federally chartered, privately-owned corporations that receive other types of federal support. The article concludes that preemption is not warranted for national banks and thrifts or for other lenders, and that banks, thrifts, and the GSEs should be part of the solution to the predatory lending problem by originating, purchasing, and/or securitizing subprime loans in compliance with state and federal law