Class 22 Bankruptcy, Spring, 2009 Consumer Mortgages Randal C. Picker Leffmann Professor of Commercial Law The Law School The University of Chicago 773.702.0864/[email protected]

Class 22Bankruptcy, Spring, 2009

Consumer Mortgages

Randal C. PickerLeffmann Professor of Commercial Law

The Law School

The University of Chicago

773.702.0864/[email protected] © 2005-09 Randal C. Picker. All Rights Reserved.

April 20, 2023 Copyright © 2005-09 Randal C. Picker 2

1322(b)(2) (b) Subject to subsections (a) and (c) of this section,

the plan may— … (2) modify the rights of holders of secured claims,

other than a claim secured only by a security interest in real property that is the debtor’s principal residence, or of holders of unsecured claims, or leave unaffected the rights of holders of any class of claims …

April 20, 2023 Copyright © 2009 Randal C. Picker 3

A Glimpse into the 1930s









Screen Capture Slide






















Reconstruction Finance Corp (47 Stat 5) (22 Jan

1932)

Statute


Emergency Relief Act (47 Stat 709) (21 July 1932)

Statute


Emergency Banking Act (48 Stat 1) (9 Mar 1933)

Statute


Securities Act of 1933 (48 Stat 74) (27 May 1933)

Statute


Gold Clause Resolution (48 Stat 112) (5 June 1933)

Statute


Norman v. Baltimore & O. R. Co., 294 US 240 (1935)


Home Owners’ Loan Act of 1933 (48 Stat 128) (13 June

1933)

Statute


Banking Act of 1933 (48 Stat 162) (16 June 1933)

Statute


Frazier-Lemke Act (48 Stat 1289) (28 June 1934)

Statute


Louisville Joint Stock Land Bank v. Radford, 295 US 555

(1935)


Frazier-Lemke Act (49 Stat 942) (28 Aug 1935)

Statute


Wright v. Vinton Branch, 300 US 440 (1937)


Today












1322(b)(2) (b) Subject to subsections (a) and (c) of this section,

the plan may— … (2) modify the rights of holders of secured claims,

other than a claim secured only by a security interest in real property that is the debtor’s principal residence, or of holders of unsecured claims, or leave unaffected the rights of holders of any class of claims …




Key Issues

Retroactivity and Takings Foreclosure Externalities Consequences for Lending and the

Distribution of the Costs of Borrowing

Documents

Class 22 Bankruptcy, Spring, 2009 Consumer Mortgages Randal C. Picker Leffmann Professor of Commercial Law The Law School The University of Chicago 773.702.0864/[email protected]