Home finance, electronic or crypto for mortage ?
Source:
Social Science Research Network - SSRN
This is a scientific study comparing traditional, electronic mortgages and those based on non-fungible token (NFT) technology.
This comparative scientific study is written by Julia Patterson Forrester Rogers, associate provost and professor of Lawat Southern Methodist University—Dedman School of Law. It should be noted that this document implies laws in force in American territory. But most of the results of the comparative study are applicable to all territories.
In this comparative scientific study, the author first highlights the advantages and disadvantages of the 3 types of mortgage loan support. Then, the author recommends solutions and updates on the laws in force in the U.S. regarding the management of promissory notes.
Divided into 5 major parts, the comparative study covers:
Part 1: The reading and comprehension problem (I. Thereading problem). In this part, the author discusses the problems of comprehension and reading, according to the different types of media, on the part of consumers. For the author, the digitization of mortgages should simplify the reading of legal clauses.
Part 2: Consisting of 3 chapters, this part covers the 3 types of mortgage loan support. In each chapter (detailed below), the author discusses the advantages and disadvantages of each type of support. The author also provides a brief history of each type of support.
Chapters in detail:
2.1 Traditional mortgage loan (II. Traditional documentation of a home mortgage loan)
2.2 Electronic mortgage (III. The transferable record)
2.3 NFT mortgage (IV. The controllable electronic record)
- Part 3: This part deals with regularization and security of the various mortgage loan vehicles (V. Control and security). After an overview of current regularizations on the various mortgage supports, the author presents the various blockchain technologies (Distributed Ledger Registration, Blockchain Registration) that fintech companies are offering. Another point covered in this section is the security of electronic and “crypto” mortgage supports.
- Part 4: The author provides a list of recommendations on the use and regulation of new mortgage loan products. The author also makes recommendations on consumer protection. (VI. Recommendations). There are 4 recommendations, the first of which is a review of the Uniform Commercial Code (UCC) regulations. Next, the U.S. Congress and the Consumer Financial Protection Bureau (CFPB) should improve consumer protection. Then, the CFPB should improve the current rules on closing residential mortgages (a problem caused by the use of electronic media). Finally, still on the subject of electronic media, the author recommends that companies managing electronic documents be better supervised by U.S. regulators.
Bibliography: (text APA)
Forrester Rogers, Julia Patterson, eMortgage and Crypto-Mortgage in Home Finance (March 29, 2024). 52 Pepperdine Law Review, Forthcoming, SMU Dedman School of Law Legal Studies Research Paper No. 644,
Available **at SSRN**: https://ssrn.com/abstract=4778343 **or** http://dx.doi.org/10.2139/ssrn.4778343