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Abstract: 

The Truth In Lending Act was amended in 2009 to include a new requirement that mortgage borrowers be informed when the ownership of their promissory note changes hands. Although the changes appear to be straightforward, the amendment used certain terms of art in commercial and real property law that have caused signifi cant confusion among courts and parties alike. Extensive litigation has resulted. This article describes the confusion and suggests how the words may be interpreted to comport with long-held Uniform Commercial Code and real property law principles.

Keywords: 15 U.S.C. 1641(g); Mortgage Loan Transfer Notice; Truth in Lending Act; creditor; assignment; promissory note; loan servicers; note ownership

Affiliations:  1: Blank Rome, LLP.