Fact Pattern 31-1A (Questions A12-A14 apply)
24-Hour Credit Corporation issues high-cost and high-fee mortgage products to people,including Benny,who could not easily obtain credit under other loan programs.
-Refer to Fact Pattern 31-1A.24-Hour Credit assigns Benny's loan to Consolidated Mortgage Investment Corporation.For most purposes,Consolidated

Question

Quizplus · Accepted Answer

When a loan is assigned or transferred, the assignee or transferee generally takes the loan subject to any claims or defenses that the borrower (Benny) could have asserted against the original lender (24-Hour Credit). Therefore, Consolidated Mortgage Investment Corporation, as the assignee of Benny's loan, is subject to any claims that Benny could have asserted against 24-Hour Credit. There is no indication in the fact pattern that Consolidated Mortgage Investment Corporation would qualify as a holder in due course, and being an assignee of a mortgage does not automatically exempt a party from federal law.

Fact Pattern 31-1A (Questions A12-A14 Apply)