1. Business Law with UCC Applications,13e Mortgages and Security Interests Chapter 20 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 20-2 Learning Objectives 1.Differentiate between a secured and an unsecured loan. 2.Identify the types of mortgages that are available to borrowers. 3.Explain the legal effect of recording a mortgage. 4.Describe the rights and duties of the mortgagor and those of the mortgagee. 5.Differentiate among Fannie Mae, Ginnie Mae, and Freddie Mac.

3. 20-3 Learning Objectives (cont.) 6.Define securitization and connect it to the financial crisis. 7.Explain the nature of a liar loan and a NINJA loan. 8.Describe how a security interest is created for personal property. 9.Decide whether security interests are perfected. 10.Determine priorities when parties claim a security interest in the same property.

4. 20-4 Mortgages and Security Interests Real Property as Security –Mortgage Costs –Types of Mortgages –Recording the Mortgage –Rights and Duties of the Mortgagor –Rights and Duties of the Mortgagee –Purchase by Mortgage Takeover

5. 20-5 Mortgages and Security Interests Types of Mortgages –Conventional Fixed-Rate Mortgage –Variable-Rate Mortgage –Interest-Only Mortgages –Graduated-Payment Mortgage –Balloon-Payment Mortgage –Reverse Mortgage

6. 20-6 Mortgages and Security Interests Types of Mortgages –Participation Loans –Construction Loans –Deeds of Trust –Subprime Mortgages –Junior Mortgages –Home Equity Loans

7. 20-7 Mortgages and Security Interests The 21st Century Financial Crisis –The Causes of the Crisis –The Effects of the Crisis

8. 20-8 Mortgages and Security Interests The Causes of the Crisis –Fannie Mae, Ginnie Mae, and Freddie Mac –Securitization and Mortgage Backed Securities –Securitization and Asset-Backed Securities –Subprime Loans (Revisited) –Liar Loans and NINJA Loans

9. 20-9 Mortgages and Security Interests The Effects of the Crisis –The Fannie and Freddie Takeover –Troubled Asset Reform Program (TARP) –Home Affordable Modification Program –Dodd-Frank Wall Street Reform and Consumer Protection Act

10. 20-10 Mortgages and Security Interests Personal Property as Security –Security Agreement –Attachment of a Security Interest –Perfection of a Security Interest –Priorities and Claims –Default of the Debtor –Plan Confirmation

11. 20-11 Mortgages and Security Interests Perfection of a Security Interest –Perfection by Filing –Perfection by Attachment Alone –Perfection by Possession