Question: There are many types of asset backed securities created by issuers bundling individual notes and security instruments for negotiation to investors. One type of asset backed security is created by auto financing companies; another is the mortgage backed security, creating by mortgage lenders. Consumer auto paper is governed by the FTC Rule 433 regarding the assignment of consumer credit contracts (consisting of a sale contract and a promissory note):

NOTICE
ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF

Mortgage paper (consisting of a mortgage and a promissory note) is not subject to the FTC Rule. Discuss the following:
a. How does the above notice impact the rights of subsequent holders of consumer auto paper?
b. How do these rights differ from holders of mortgage backed paper?
c. How would these differences impact the way in which the business transaction is structured?