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Still Crazy After All These Years: The Absolute Assignment Of Rents In Mortgage Loan Transactions, Julia Patterson Forrester Rogers

Faculty Journal Articles and Book Chapters

This Article explores the problems caused by the absolute assignment of rents in mortgage loan transactions, which have continued for more than a century, and discusses 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 the rents of mortgaged property. An absolute assignment of rents purports to transfer title to rents to the mortgage lender, although in substance it creates …