Definition

Mortgage loan (Ro: credit ipotecar, Fr.: crédit hypothécaire, n.m., Gr.: υποθήκη, Cz.: hypotéka, Cr.: hipoteka, Alb.: Hipotekë/a) (See also: adjustable rate mortgage, fixed rate mortgage, mortgage-backed securities, reverse mortgage, second mortgage) = represents a financing instrument that allows the lender to secure his or her loan with real estate property owned by the borrower, therefore having a claim on the property.

Should the borrower fail to pay his or her debt, plus interest, the lender can foreclose, by selling the property, and use the income to clear the debt. If, however, the borrower pays the loan, he or she will own the property free and clear.

 

Useful links

Legislation

http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90m40_e.htm - Ontario Mortgage Act, Canada [English]

https://www.fdic.gov/regulations/laws/rules/6500-3030.html#6500hmda1975 - Home Mortgage Disclosure Act of 1975, USA [English]

http://www.cdep.ro/pls/legis/legis_pck.htp_act_text?idt=21105 – Law 190/1999, Romania [Romanian]

http://www.legislation.gov.uk/ukpga/Geo5/15-16/20 - Law of Property Act 1925, UK [English]

Online Publications

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1072304 - Mian, Atif R., Sufi, Amir, 2008, The Consequences of Mortgage Credit Expansion: Evidence from the U.S. Mortgage Default Crisis, Social Science Research Network

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1027961 - Porter, Katherine M., 2008, Misbehavior and Mistake in Bankruptcy Mortgage Claims, Social Science Research Network 

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1291524 - Mian, Atif R., Sufi, Amir, Trebbi, Francesco, 2009, The Political Economy of the U.S. Mortgage Default Crisis, Social Science Research Network

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1324023 - Levitin, Adam J., Twomey, Tara, 2010, Mortgage Servicing, Social Science Research Network

Publications

Boleat, Mark, Coles, Adrian, 2012, The Mortgage Market, USA, Routlege

Schmudde, David A., 2004, A Practical Guide to Mortgages and Liens, USA, Ali-Aba

Sentowski, Hank C., 2007, Mortgages: Fundamentals, Issues and Perspectives, New York, Nova Science Publishers

 

By Alexandru Coraș