Constitutional Issues Relating to Proposals for Foreclosure Moratorium Legislation That Affects Existing Mortgages

Author / Creator

Library of Congress. Congressional Research Service

Available as

Online

Summary

Reviews Congressional authority to pass laws pertaining to foreclosures, and explains the Takings Clause, the Contract Clause, and Substantive Due Process jurisprudence. Applies the test a court is...

Reviews Congressional authority to pass laws pertaining to foreclosures, and explains the Takings Clause, the Contract Clause, and Substantive Due Process jurisprudence. Applies the test a court is likely to use in assessing whether a Federal foreclosure moratorium would offend the Takings Clause guarantee that private property may not be seized without just compensation. Suggests that the application of this proposal to tranches of mortgage-backed securitized trusts could, in a minority of instances, potentially be considered "takings," requiring just compensation for the purpose of the Fifth Amendment.

Show More