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-a summary should be brief; about 25 of the original article-sh.docx
- 1. -a summary should be brief; about% 25 of the original article -should be ONLY one paragraph -should be in your own words (paraphrasing) -the first line/sentence should be an introductory phrase which includes – name of article, author, a reporting verb, and the central point aka main idea (in our own words, of course) (this serves to cite the source) -NO OPINIONS; NO EXAMPLES; NO CONCLUSION Erril UNIT f WO lfhe Connerciol Enylronment € For Review What is a subpnme mortgage? Hou' does rt difler from a siandard fixed-rate mortgage? What is a home equirl. loan? When is private mortgage insurance required? Whrch party does ir protect? ,,. Does the Truth-rn-Lendlng Act (TIL{) apply ro all mor"tgages? Hou. c1o Lhe TIL{ provisions protect borror,r,ers and curb abusive practices by mortgage lenders? ':. What is a short sale? How mrght a short sale be more advantageous than a mortgage foreclosure for a borrorver, and what impact does rt have on the balance owed to the lender on the mortgage loan?
- 2. :,. In a mortgage foreclosure, what 1ega1 rights do mortgage holders har.e if the sale proceeds are insufficienr ro pay rhe underlyrng debt? Questions and Case Problems isclosure Requirements. Rancho l'lortgage. Inc.. is plan, ning a nerv aclvertrsir-rg campaign clcsignecl to attract irome - buvrrs in a dilficult economic environnrent. Rancho wants to promote its new loan product, rvhich offers a llxed rnter- est rate lor the lirst five years ancl then su'itches to a yarl- able rate o[ interest. Rancho beheves that Spanrsh-speaklng homebul'ers have been underserved rn recent r,ears, and it shou sul-rs:' 6i^fsUia-inancing. Jane Lane refinancecl her n.rortgage u,ith Central Ec1urt1., Inc. Central Equiti,spiit rhe rransarrion into tu,o separate loan documents w'rth separate Ti-uth-in- Lending clisclosure statements ancl settlement staiernenls. -hvo years Ialer, Lanc sougl'rt tLr erercise her right to rcscrs- sron uncler the Horne Ownershtp and Ec1uit1, Proteutron Act (HOEPA), but Central Eciuitl' re|used. Central EquiLy responclecl Lhat the origin:rl transactions compnsecl two se p- arate loan transactions and because neither loan imposecl sufficient lees and costs to trigger HOEPA. its protecrions drd not apply Lar-re clairns that i[ the costs and lees lr.ere combined into a single transaction (rvhich Lane expected the loan to be), they u,,ou1d surpass the HOEPA threshoLd and rrigger its protections. In turn, because Cenrral Equiq. did not provide the necessarl, disclosures under HOEPA, Lane argues that she can properlt,rescrnd ur-rder rts provi- sions. Is Lane correct? Does ioan splrtting allorv the lender
- 3. to colurt cach loan transaction r,vLth a borros.er separately Ibr HOEPA purposes? Why or rvhv notl l3-3. Lender/s Options. In 2008, Frank relocated and purchased a home in a beautiful mountain town. The home was five years old, and Frank purchased ir for $450,000. He paid $90,000 as a down pa).rrnent and financed the remaining $360,000 of the purchase price with a loan from Bank of Town. Frank slgned mortgage documents that gave Bank o[ Town a mortgage interest in the home. Frank made pay- ments on the loan for three years. But the housing market declinecl significantly, ancl Franks home is nori laluecl at only, Iii265,000. Tl're balance clne on his loan is S154,000. In adclrtron to the clecline in hor-rsing pnces. the economy has slori.ed, and the boon'ring business that Frank statted u,hen he bought the home has experienced a decrease in revenues. It seems iner.rtable that Frank ivi11 not be able to make his mortgage payments. Discr-rss Bank ol Touns o[)Lion: In lh]s'lluJlion. i.r:+. Home Ownership and Equity Protection Act. N{ichael and Edith Jones ou'ned a home that .ent into foreclosure. During this time, they were contacted bv a representative of Rees-lr4ax. whose notice read: "There are onll'a fer.v monlhs Lo go in 1'our redemption penod! Your options ro sa:e the equity in your home are fading. Cali me immediateiy for a no-bull, no-obligation assessment ol 1'or-rr stu.ltlon. Er,en il I'ou have been pron-risecl' b1, a rnortgirge broker or inr,eslor that the1, u,il1 hclp, CALL N{E The Joneses contactecl Rees-Max, ar-rd tl'ie;,er-iLerecl into ir srle ancl lease back lransaction. Rees-N{ax would pr,rrchase the pro]ret'ty lrorn the Joneses. the Joneses u,oulcl lease Lhe property, [or a fer'r' monlhs, and then the Joneses ri.ould purchase the propert) back from Rees-N{ax on a contract. The prop-
- 4. ert)- was appraised at $278.000 and purchased b1. Rees- lr'[ax lor 52]+,000, u.ith more than 530,000 in fees. The Joneses dispuied these fees, and Rees-Max mor-ed to evrct them. The agreement did not use the terms clebt, stcu'iLy, or mortgagt, and the documents statecl thar no securlt- rnle l: est r,r,as granted. Does this [ransaction constitute a mortgage that would receive protection nncie r thc Truth-in-Lendrng Act and the Horne Ou,nershrp rncl Equrtl'Protectron Act? Why or rr'l-n'notl lJorrc-s r: Rt't's-tr.lrrt, LLC, t1+ FSupp.2d I 1i9 (D Nlinn 2007)l I' RiSht of Rescission. C,rorge ancl Nlona Antanuos ohtarnecl rr mortgage lorrn secured ,lth rental propertv ll-orr rl're I-irst Natronal Bank ol Anzona. AL the closing, Lhcl rccclvccl lrom the bank a Notice of Right to Cancel. informing thern ol therr three-day rescission periocl r-rnder the Truth- in-Lending Act (TIL{). The follolr-ing dair according to the Antanuoses, they lnformecl the lender via far that the1, t ? What 'ants to direct rrs ads to that market. Fqil lT Two I fhe Commercial Environment @ Or.rtions and Gase Problems lz-a
- 5. MechaniCs Lien, Grant is the owner ol a relativell, old home r-aluecl at $45.000. He notices that Lhe bathtubs and fuxtures in both bathrooms are leaking and need to be replaced. He contracrc r.rith Janes Plumbing to replace the bathtubs and fixtnres. Jane replaces them, ancl on .JrLne 1 she submits her bill ol 54,000 to Grant. Because ol Irn:rncial dilficr-rlties, Grant cloes not pay the bill. Grant's onl1. asset is his hon-re, but his stateb homestead exemption is S40,000. Drscuss fully Janes remedies rn this situatlon. Voluntary versus lnvoluntary Bankruptcy. Burke has been a rrrnchcr all her lilc, rarsing cattlc ancl crops. Her ranch is va[uecL at 5]500,000. aln-rost all o[ rvhicir is exernpt under state Lau'. Burke has erght creditors and a total rndebtedness of S70.000 Tu,o of her largest credrtors are Oman (530,000 or,ed) ancl Sneed ($25,000 owed) The other six credrtors hale clainrs ol less than $5,000 each. A clrought has rr-rinecl all olBurkes crops and forcecl her to scll manl,oihel catt]e ai a loss. She cannot pay olf her creditL,rs. . Under the Bankruptcy Code, can Burke. r.rtrh a 5500.000 ranch. r-oluntarilr. oetition herself inro bankruntur'?. Erplair-r. Cor-rlcl cithcr Omrn or Sneecl lorce Burke into involun- @ Preferences. Peaslee rs not kno$,n for hrs business sense. He started a greenhouse and nurser,v business tro rears ago. ancl because ol his lack ol experience, he soon r rs Lrr clelrt to a nLrlnbcr o{ cr-cclitors. On Februarl, l , Peaslee bor ronecl Si,000 Il-om his laLher to pay some of these credi- tors On Nial' 1. Peaslee pard back the 55,000. depletrng his entLre working capital. One creditor, the Cooi Spnngs Nursen Supply' Corp., extended creclit to Peaslee on
- 6. nLLrreroLls pr-rrchases. Cool Springs pressured Peask. l,rr l)a'Irent. ancl onJuly l, Peaslee paid CooJ Spr-ings hall tl're amollnr ou'ecl. LJn September 1, Peaslee voluntanlr p.Lr- tioned hrmseif into bankruptcy The trustee in bankruptcr' clarmed tl-rat both Peaslees fatl-rer and Cool Springs must tllrn over to the clebtors estate the alnounts Peaslee paid to hem. Discuss ful1y the trustee's claims Cathy Colen'ran took ollt loans to complete r colle ge eclucatron. After gradr-ratLon, Coleman u,as irregularly employed as a teacher before filing a petition in a federal bankruptcy court under Chapter 13. The court confirmed a frve-year plan under which Coleman was required to commit ai1 of her disposable income Lo pay- ing the student loans. Less tharl ayear later, she was iaid off. Still owing more than $100,000 to Educatlonal Credit Management Corp., Coleman asked the court to discharge the debt on the ground that it would be undue hardship o bankruptcy? With these facts and principles rn mind, what ---- argument could De made rn support ol Lolemans requesti ^rll I2-5. aned$400,000 to Carter Oaks Crossing. Joseph Harman, president of Carter Oaks Crossing, signed a promissory note proyiding that the company would repay the amount with interest in installments beginning in 1999 and ending by 2006. Har- man signed a personal guaranty for the note. Carter Oaks Crossing delaulted on the note, so McAfee sued Harman for payment under the guaranty Harman moved for sum-
- 7. mary judgment on the ground that McAfees claim against him had been discharged in his Chapter 7 bankruptcy case, filed after L999 but before the default on the note. The guaranty was not listed among Harman's debts in the bankruptcy filing. Would the obiigation under the guaranty have been discharged in bankruptcy, as Harman claimed? Why or why not? lHarman.,,. McAfee, 302 Ga.App. 698, 69r S.E.2d 586 (2oro)l 12-6, Liens, Autolign Manufacturing Group, Inc., was a piastic injection molder that made parts for the auto industry Because ofa fire at its plant, Autolign subcontracted its work to several other companies to produce parts for its custom- ers. Autolign provrded the subcontractors with molds it owned so that they could produce the exact. parts needed. After the subcontractors produced the parts, Autoiign sold them to automakers. Shortly afterward, Autolign ceased operations. The subcontractors sued Autolign for breach of contract, claiming that they were never paid for the parts that they had produced for AutoLign. The subcontractors asserted a statutory "molder's lien" on the molds in their possession. A molder's lien is similar to an artisan's lien in that it is possessory but it was established by a Michigan statute rather than common law. One of Autolign's credi- tors, Wamco 34,Ltd., argued that the molds were its prop- erty because the molds were used to secure repa),rnent of a debt that Autolign owed to Wamco. The trial court held that Wamco was a secured creditor and that its inter- est had priority over the plaintiffs' lien in the molds. The subcontractors appealed. Which party had the superior claim? Explain your answer. lDelta Englneered Plastics, LLC v. Autolign Manufactuing Group, Inc.,286 Mich.App. 115, 777 N.M2d 502 (2010)l t2-7. Jflill Case Problem with Sample Answer. Protection for l$l o.Utoo' Bill and Betty Ma owned one-halfo[a two-
- 8. unit residentiai building in San Francisco, Califor- nia. Betty and her mother iived in one of the units, and Bill lived in China. Mei-Fang Zhaag (and others) obtained a judgment in a federal district coun against Bill Ma (and others, including Wei-Man Ra)rmond Tse) based on a clalm that they had been the victims of a foreign cuffency trading scam operated by Bill Ma and others. The judgment was 'an erclpiion? 'rth respect to a debtor, r.ihat is the gi?I-ol # <- for her to pay it. toa The New York Times. Nov 17, 2014 Pay Phones in New York City Will Become Free Wi-Fi Hot Spots By Matt Flegenheimernov The modern New York pay phone will provide no shelter from the rain, no alcove for the quarrelingcouple seeking a private moment to reconcile. It will afford little refuge to the prospective superhero requiring a wardrobe change. In fact, the pay phone of tomorrow will include no traditional phone at all — nor any payment, for that matter, at least for communication within the United States.
- 9. But beginning next year, city officials said on Monday, the relics will evolve into something deemed far more practical: thousands of Wi-Fi hot spotsacross the city, providing free Internet access, free domestic calls using cellphones or a built-in keypad, a charging station for mobile devices and access to city services and directions. Mayor Bill de Blasio’s administration, which issued a request for proposals earlier this year, awarded the project to CityBridge, a consortium of companies including Qualcomm and Titan. The initiative, known as LinkNYC,will be paid for by advertising revenues from the kiosks’ digital displays. Administration officials framed the move as an extension of Mr. de Blasio’s focus on inequality. Maya Wiley, counsel to the mayor, said low-income people, particularly blacks and Latinos, relied disproportionately on cellphone browsing to get online. And data charges can add up. “It’s going to help us closethe digital divide,” Ms. Wiley said during a briefing about the plan at City Hall. In a statement,Mr. de Blasio called expanded broadband access “essential for everything we need to do to be a fair and just city,” adding that the system would be “the fastest and
- 10. largest municipal Wi-Fi network in the world.” The city’s Department of Information Technology and Telecommunicationssaid the network would be 100 times as fast as average municipal Wi-Fi systems, and more than 20 times as fast as average home Internet service in the city. A two-hour movie, officials said, could be downloaded in about 30 seconds. The kiosks’ Wi-Fi range will extend 150 feet in any direction, officials said. Up to 250 devices would be able to use the network at each kiosk without diminishing service and in heavily trafficked areas access points can be added. The department first tested pay phone Wi-Fi as part of a pilot program under Mayor Michael R. Bloomberg in 2012. Now the city hopes to install about 10,000 kiosks, each tall and slender — about 9.5 feet high and less than a foot wide. There are now about 8,400 pay phones. It is expected to cost more than $200 million to buildthe network. While few have taken issuewith the goal of expanded Wi-Fi, someelected officials have expressed reservations about the city’s decision to entrust the final product to a single enterprise like CityBridge. In a statement on Monday, Letitia James, the city’s public
- 11. advocate, said that she had “serious concerns” about the city’s plan, calling it “a monopolistic arrangement.” “Instead of trying to rush the process, the administration should seek a new authorizing resolution from the City Council that contemplates multiple companies,” Ms. James said. The administration has defended the process, arguing that it allowed for competitive bidding and noting that CityBridge comprisedseveral companies. Earlier on Monday, Ms. Wiley said that she was prepared for lawsuits against the city. “In my legal opinion,” she said, “this is the coolest thingever.” Officials also sought to pre-empt the privacy concerns. The city said it would “never share or sell any protected personal information” collected on the network. But companies may use aggregate data, information extracted anonymously from a pool of users, to guide advertising. Though pay phones have waned in popularity, they served a critical function during Hurricane Sandy, when power failures felled other communication sources. The city said backup batteries would allow for 911 calls to be made for at
- 12. least 24 hours after power went out. The city also plans to remain hospitableto the cape-wearing set. CityBridge said it would maintain threeexisting “Superman pay phones” scattered along West End Avenue, where a small number of traditional phone booths have survived. For the rest of the city, privacy may be more elusive. Without headphones — or careful attention to volume — calls from the kiosk keypad could be broadcast semi-publicly, as if on speakerphone. Colin O’Donnell, a founding partner at Control Group, a member of CityBridge, wondered in an interview if the project might fuel cottage industries for headphone vendors or umbrella salesmen. Monday would have been good for business. The National Weather Service said it was the city’s rainiest Nov. 17 on record.