Document:

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                                                                 Exhibit 10.38.2

                ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

          This Assignment, Assumption and Recognition Agreement (this
"Agreement"), effective as of January 20, 2006, among SOVEREIGN BANK (the
"Bank"), HANOVER CAPITAL MORTGAGE HOLDINGS, INC. ("Holdings") and HANOVER
CAPITAL PARTNERS 2, LTD. (the "Successor", and together with Holdings and the
Bank collectively, the "Parties" and individually, a "Party").

                                    RECITALS

          A. The Bank, Holdings and Hanover Capital Partners, Ltd. ("Partners")
executed and are parties to a Master Repurchase Agreement dated as of June 28,
2005 (the "Repurchase Agreement"), a true and correct copy of which Repurchase
Agreement is attached hereto as Exhibit A.

          B. By letter agreement dated as of December 22, 2005 by and among the
Bank, Partners and Holdings (the "Consent Agreement"), the Bank conditionally
consented to a merger of Partners and Hanover Capital Partners 2, Inc.
("Partners 2") into HanoverTrade, Inc. ("Trade") and to a change of Trade's name
to "Hanover Capital Partners 2, Ltd.", the name of the Successor (the "Plan"). A
true and correct copy of the Consent Agreement is attached hereto as Exhibit B.

          C. Holdings and the Successor have advised the Bank that the Plan has
been effected and the Parties desire to document one of the conditions
subsequent to the Bank's consent to the Plan, being identified in Section 3(c)
of the Consent Agreement as an agreement evidencing the assignment to and
assumption by the Successor of Partners' rights and duties under the Repurchase
Agreement.

          For good and valuable consideration the receipt and sufficiency of
which hereby are acknowledged, and of the premises and mutual covenants herein
contained, the Parties, ending to be legally bound, hereby agree as follows:

                                  INCORPORATION

          1. The foregoing defined terms and Recitals are incorporated in this
Agreement by reference.

                            ASSIGNMENT AND ASSUMPTION

          2. Holdings and the Successor hereby represent, warrant and covenant
to the Bank that, by operation of merger in connection with the Plan, Partners
has, as of January 1, 2006, granted, transferred, assigned and delegated to the
Successor all of the right, title, interest and obligations of Partners, as one
of the entities comprising the Seller, in, to and under the Repurchase Agreement
and that Successor has, as of January 1, 2006 assumed from Partners all of the
right, title, interest and obligations of Partners, as one of the entities
comprising the Seller, in, to and under the Repurchase Agreement.

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                         REPRESENTATIONS AND WARRANTIES

          3. Each of Holdings and the Successor represent and warrant to the
Bank as of the date hereof that:

               (a) an Agreement and Plan of Merger has been duly authorized and
entered into, by and among Partners, Partners 2 and Trade (the "Merger
Agreement");

               (b) the Merger Agreement is in full force and effect and has
effected the Plan;

               (c) the provisions thereof have not been waived, amended or
modified in any respect;

               (d) the copy of the Certificate of Merger attached hereto as
Exhibit C, is a true, correct and complete copy of the Certificate of Merger
filed December 29, 2005, with the Secretary of State of the State of Delaware
(the "Delaware Certificate");

               (e) the copy of the Certificate of Merger attached hereto as
Exhibit D is a true, correct and complete copy of the Certificate of Merger
filed December 29, 2005 with the Secretary of State of the State of New York
(the "New York Certificate" and together with the aware Certificate
collectively, the "Certificates");

               (f) All steps required to change Trade's name to "Hanover Capital
Partners 2, Ltd." have been taken and such name change is complete and final;

               (g) the Successor is a business corporation duly organized and
validly existing under the laws of the State of Delaware and has all requisite
corporate power and authority to assume Partner's rights and obligations under
the Repurchase Agreement;

               (h) the Successor's organizational identification number assigned
by the State of Delaware is 3049275;

               (i) Holdings' organizational identification number assigned by
the State of Maryland is D04712238;

               (j) each of Holdings and the Successor has full corporate power
and authority to execute, deliver and perform under this Agreement and the
Repurchase Agreement, and to consummate the transactions set forth herein and
therein. The consummation of the transactions contemplated by this Agreement and
the Repurchase Agreement is in the ordinary course of each of Holdings' business
and the Successor's business and will not conflict with, or result in a breach
of, any of the terms, conditions or provisions of each of Holdings' and the
Successor's respective charter or by-laws, or any legal restriction, or any
material agreement or instrument to which either of Holdings or the Successor is
now a party or by which it is bound, or result in the violation of any law,
rule, regulation, order, judgment or decree to which either of Holdings and the
Successor or its respective property is subject. The execution, delivery and
performance by each of Holdings and the Successor of this Agreement and the
Repurchase Agreement, and the consummation by either of them of the transactions
contemplated hereby and thereby, have been duly authorized by all necessary
corporate action of each of Holdings and the Successor. This Agreement has been
duly executed and delivered by each of Holdings and the Successor and it

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and the Repurchase Agreement constitute the valid and legally binding
obligations of each of holdings and the Successor enforceable against each of
Holdings and the Successor in accordance with their respective terms except as
enforceability thereof may be limited by bankruptcy, insolvency, or
reorganization or similar laws now or hereinafter in effect relating to
creditor's rights generally and by general principles of equity, regardless of
whether such enforceability is considered in a proceeding in equity or in law;

               (k) no material consent, approval, order or authorization of, or
declaration, filing or registration with, any governmental entity is required to
be obtained or made by either of Holdings and the Successor in connection with
the execution, delivery or performance by either Holdings or the Successor of
this Agreement or the Repurchase Agreement, or the consummation by either of
them of the transactions contemplated hereby or thereby;

               (l) as of the date hereof, except as modified in Sections 3(g),
3(h) and 3(i) above, each of Holdings and the Successor, reaffirm and restate to
the Bank the representations and warranties set forth in Section 10 of the
Repurchase Agreement and the covenants set forth in Section 11 of the Repurchase
Agreement;

               (m) the Successor is a wholly owned subsidiary of Holdings;

               (n) the financing statement with respect to the Successor
attached hereto as Exhibit E, if filed within four (4) months of January 1,
2006, with the Secretary of State of Delaware, shall be sufficient to continue
the Bank's first lien perfected security interest or ownership in the Purchased
Items and Purchased Assets;

               (o) the financing statement amendments with respect to Holdings
attached hereto as Exhibit F, if filed within four (4) months of September 30,
2005, with the State of Maryland, Department of Assessments and Taxation, shall
be sufficient to continue the Bank's first lien perfected security interest or
ownership in the Purchased Items and Purchased Assets;

               (p) the financing statement amendments with respect to the
Successor attached hereto as Exhibit G, if filed with the State of Maryland,
Department of Assessments and Taxation, correctly identifies the name and
address of the Successor with respect to initial financing statement
0000000181234777 filed June 28, 2005 with such public office; and

               (q) the terms of the Certificates are true, correct and complete.

                                   RECOGNITION

          4. From and after the date hereof, the Bank and Holdings shall
recognize the Successor as successor to all Partners' right, title and interest
to and under the Repurchase Agreement and shall look solely to the Successor for
performance from and after the date hereof of the Partners' obligations with
respect to the Repurchase Agreement.

          5. The Bank hereby recognizes the occurrence of the following
conditions set forth in Section 3 of the Consent Agreement, which constitutes
full and complete satisfaction of all conditions subsequent in connection with
the consent and waiver set forth in Section 2 of the Consent Agreement:

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               (a) the preparation and filing by the Bank of UCC financing
statements and financing statement amendments in form and substance set forth,
respectively, in Exhibit E, Exhibit F and Exhibit G, all in accordance with
Section 3(a) of the Consent Agreement;

               (b) the delivery to the Bank by Holdings and the Successor of
fifteen (15) Powers of Attorney fully-executed by Holdings and the Successor and
acknowledged as set forth in he Purchase Confirmation dated as of June 28, 2005
by and between the Bank, Holdings and the Partners, all in accordance with
Section 3(b) of the Consent Agreement;

               (c) the delivery to the Bank of this Agreement executed by
Holdings and the Successor, constituting the delivery of an Assignment and
Assumption Agreement in form and substance satisfactory to the Bank with respect
to the Repurchase Agreement and Partner's rights and duties thereunder, all in
accordance with Section 3(c) of the Consent Agreement; and

               (d) the delivery to the Bank and Deutsche Bank National Trust
Company ("Deutsche") of that certain Assignment, Assumption and Recognition
Agreement, dated as of the date hereof, by and among the Parties and Deutsche,
executed by the Parties and Deutsche, constituting the execution and delivery to
the Bank and Deutsche by Holdings and the Successor of an Assignment and
Assumption Agreement in form and substance satisfactory to the Bank and Deutsche
with respect to that certain Custodial Agreement, dated as of June 27, 2005, by
and among Holdings, Partners, Deutsche and the Bank, and Partners' rights and
duties thereunder, all in accordance with Section 3(d) of the Consent Agreement.

                                  MISCELLANEOUS

          6. Notice Addresses

               (a) The Successor's address for purposes of all notices and
correspondence related to the Repurchase Agreement and this Agreement is:

          Hanover Capital Partners 2, Ltd.
          200 Metroplex Drive, Suite 100
          Edison, NJ 08817
          Attention: Joyce A. Mizerak, President

               (b) The Bank's address for purposes for all notices and
correspondence related to the Repurchase Agreement and this Agreement is:

          Sovereign Bank
          Sovereign Bank Capital Markets
          3 Friends Lane
          Newtown, PA 18940
          Attention: Dean G. DiGiovanni, Vice President

               (c) Holdings' address for purposes of all notices and
correspondence related to the Repurchase Agreement and this Agreement is:

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          Hanover Capital Mortgage Holdings, Inc.
          200 Metroplex Drive, Suite 100
          Edison, NJ 08817
          Attention: John A. Burchett, President

          7. This Agreement shall be construed in accordance with the
substantive laws of the Commonwealth of Pennsylvania (without regard to conflict
of laws principles) and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws, except to the extent
preempted by federal law.

          8. No term or provision of this Agreement may be waived or modified
unless such waiver or modification is in writing and signed by the party against
whom such waiver or modification is sought to be enforced.

          9. For the purpose for facilitating the execution of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute and be one
and the same instrument.

          10. The representations, warranties and covenants of Holdings and the
Successor in his Agreement and the representations, warranties and covenants of
Holdings and the Successor in that certain Assignment, Assumption and
Recognition Agreement of even date herewith among the Parties and Deutsche Bank
National Trust Company shall be deemed to be representations, warranties and
certifications for purposes of Section 12(d) of the Repurchase Agreement and the
Remedies set forth in Section 13 of the Repurchase Agreement.

          11. Holdings and the Successor authorize the Bank to file such
financing statements, amendments, assignments and terminations under the Uniform
Commercial Code (as defined in the Repurchase Agreement) as the Bank deems
appropriate to protect, perfect, continue the perfection of or to more fully
reflect the collateral subject to the Bank's security interest or other interest
granted by either Holdings or Successor under the Repurchase Agreement and
documents executed in connection with the Repurchase Agreement.

          12. Holdings and the Successor shall jointly and severally indemnify
and hold the Bank harmless for all reasonable costs and fees, including
reasonable attorneys fees, incurred by the Bank in connection with the Consent
Agreement and this Agreement and the transactions and documents contemplated
thereby and hereby.

          13. The Parties ratify the Repurchase Agreement as amended by the
Agreement.

          14. Capitalized terms used but not defined in this Agreement but that
are defined in he Repurchase Agreement shall have the meanings ascribed to them
in the Repurchase Agreement.

                         [signatures on following page]

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          IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by heir duly authorized officers as of the date first above written.

                                        SOVEREIGN BANK

                                        By: /s/ Dean G. DiGiovanni
                                            ------------------------------------
                                        Name: Dean G. DiGiovanni
                                        Title: Vice President

                                        HANOVER CAPITAL MORTGAGE HOLDINGS, INC.

                                        By: /s/ Irma N. Tavares
                                            ------------------------------------
                                        Name: Irma N. Tavares
                                        Title: Chief Operating Officer

                                        HANOVER CAPITAL PARTNERS 2, LTD.

                                        By: /s/ Joyce S. Mizerak
                                            ------------------------------------
                                        Name: Joyce S. Mizerak
                                        Title: President

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                                    EXHIBIT A

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                                    EXHIBIT B

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                                    EXHIBIT C

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                                    EXHIBIT D

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                                    EXHIBIT E

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                                    EXHIBIT F

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                                    EXHIBIT G<PAGE>
                                                                 Exhibit 10.38.3

                ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

          This Assignment, Assumption and Recognition Agreement (this
"Agreement"), effective as of January 20, 2006, among DEUTSCHE BANK NATIONAL
TRUST COMPANY ("Deutsche"), SOVEREIGN BANK (the "Bank"), HANOVER CAPITAL
MORTGAGE HOLDINGS, INC. ("Holdings") and HANOVER CAPITAL PARTNERS 2, LTD. (the
"Successor", and together with Deutsche, Holdings and the Bank collectively, the
"Parties" and individually, a "Party").

                                    RECITALS

          A. Deutsche, the Bank, Holdings and Hanover Capital Partners, Ltd.
("Partners") executed and are parties to a Custodial Agreement dated as of June
27, 2005 (the "Custodial Agreement"), a true and correct copy of which Custodial
Agreement is attached hereto as Exhibit A.

          B. By letter agreement dated as of December 22, 2005 by and among the
Bank, Partners and Holdings (the "Consent Agreement"), the Bank conditionally
consented to a merger of Partners and Hanover Capital Partners 2, Inc.
("Partners 2") into HanoverTrade, Inc. ("Trade") and to a change of Trade's name
to "Hanover Capital Partners 2, Ltd.", the name of the Successor (the "Plan"). A
true and correct copy of the Consent Agreement is attached hereto as Exhibit B.

          C. Holdings and the Successor have advised the Bank that the Plan has
been effected and the Parties desire to document one of the conditions
subsequent to the Bank's consent to the Plan, being identified in Section 3(d)
of the Consent Agreement as an agreement evidencing the assignment to and
assumption by the Successor of Partners' rights and duties under the Custodial
Agreement.

          For good and valuable consideration the receipt and sufficiency of
which hereby are acknowledged, and of the premises and mutual covenants herein
contained, the Parties, ending to be legally bound, hereby agree as follows:

                                  INCORPORATION

          1. The foregoing defined terms and Recitals are incorporated in this
Agreement by reference.

                            ASSIGNMENT AND ASSUMPTION

          2. Holdings and the Successor hereby represent, warrant and covenant
to Deutsche and the Bank that, by operation of the merger in connection with the
Plan, Partners has, as of January 1, 2006, granted, transferred, assigned and
delegated to the Successor all of the right, title, interest and obligations of
Partners, as one of the entities comprising the Seller, in, to and under the
Custodial Agreement and that Successor has, as of January 1, 2006 assumed from
Partners all of the right, title, interest and obligations of Partners, as one
of the entities comprising the Seller, in, to and under the Custodial Agreement.

                                        1

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                         REPRESENTATIONS AND WARRANTIES

          3. Each of Holdings and the Successor represent and warrant to
Deutsche and the Bank as of the date hereof that:

               (a) an Agreement and Plan of Merger has been duly authorized and
entered into by and among Partners, Partners 2 and Trade (the "Merger
Agreement");

               (b) the Merger Agreement is in full force and effect;

               (c) the provisions of the Merger Agreement have not been waived,
amended or modified in any respect;

               (d) the copy of the Certificate of Merger attached hereto as
Exhibit C, is a true, correct and complete copy of the Certificate of Merger
filed December 29, 2005, with the Secretary of State of the State of Delaware
(the "Delaware Certificate");

               (e) the copy of the Certificate of Merger attached hereto as
Exhibit D is a true, correct and complete copy of the Certificate of Merger
filed December 29, 2005 with the Secretary of State of the State of New York
(the "New York Certificates" and together with the Delaware Certificate
collectively, the "Certificates");

               (f) All steps required to change Trade's name to "Hanover Capital
Partners 2, Ltd." have been taken and such name change is complete and final;

               (g) the Successor is a business corporation duly organized and
validly existing under the laws of the State of Delaware and has all requisite
corporate power and authority to assume Partner's rights and obligations under
the Custodial Agreement;

               (h) the Successor's organizational identification number assigned
by the State of Delaware is 3049275;

               (i) Holdings' organizational identification number assigned by
the State of Maryland is D04712238;

               (j) each of Holdings and the Successor has full corporate power
and authority to execute, deliver and perform under this Agreement and the
Custodial Agreement, and to consummate the transactions set forth herein and
therein. The consummation of the transactions contemplated by this Agreement and
the Custodial Agreement is in the ordinary course of each of Holdings' business
and the Successor's business and will not conflict with, or result in a breach
of, any of the terms, conditions or provisions of each of Holdings' and the
Successor's respective charter or by-laws, or any legal restriction, or any
material agreement or instrument to which either of Holdings or the Successor is
now a party or by which it is bound, or result in the violation of any law,
rule, regulation, order, judgment or decree to which either of Holdings and the
Successor or its respective property is subject. The execution, delivery and
performance by each of Holdings and the Successor of this Agreement and the
Custodial Agreement, and the consummation by each of the transactions
contemplated hereby and thereby, have been duly authorized by all necessary
corporate action of each of Holdings and the Successor. This

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Agreement has been duly executed and delivered by each of Holdings and the
Successor and it and the Custodial Agreement constitute the valid and legally
binding obligations of each of Holdings and Successor enforceable against each
of Holdings and the Successor in accordance with their respective terms except
as enforceability thereof may be limited by bankruptcy, insolvency, or
reorganization or other similar laws now or hereinafter in effect relating to
creditor's rights generally and by general principles of equity, regardless of
whether such enforceability is considered in a proceeding in equity or in law;

               (k) no material consent, approval, order or authorization of, or
declaration, filing or registration with, any governmental entity is required to
be obtained or made by either of Holdings and the Successor in connection with
the execution, delivery or performance by Holdings or the Successor of this
Agreement or the Custodial Agreement, or the consummation by either of them of
the transactions contemplated hereby or thereby-;

               (l) the Successor is a wholly owned subsidiary of Holdings; and

               (m)the terms of the Certificates are true, correct and complete.

                                   RECOGNITION

          4. From and after the date hereof, Deutsche, the Bank and Holdings
shall recognize the Successor as successor to all Partners' right, title and
interest to and under the Custodial Agreement and shall look solely to the
Successor for performance from and after the date hereof of the Partners'
obligations with respect to the Custodial Agreement.

          5. When this Agreement is executed by the Parties and delivered to the
Bank and Deutsche, the Bank and Deutsche shall recognize the satisfaction of
Section 3(d) of the Consent Agreement.

                                  MISCELLANEOUS

          6. Notice Addresses

               (a) The Successor's address for purposes of all notices and
correspondence related to the Custodial Agreement and this Agreement is:

                    Hanover Capital Partners 2, Ltd.
                    200 Metroplex Drive, Suite 100
                    Edison, NJ 08817
                    Attention: Joyce A. Mizerak, President

               (b) The Bank's address for purposes for all notices and
correspondence related to the Custodial Agreement and this Agreement is:

                                        3

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                    Sovereign Bank
                    Sovereign Bank Capital Markets
                    3 Friends Lane
                    Newtown, PA 18940
                    Attention: Dean G. DiGiovanni, Vice President

               (c) Holdings' address for purposes of all notices and
correspondence related to the Custodial Agreement and this Agreement is:

                    Hanover Capital Mortgage Holdings, Inc.
                    200 Metroplex Drive, Suite 100
                    Edison, NJ 08817
                    Attention: John A. Burchett, President

               (d) Deutsche's address for purposes of all notices and
correspondence related to the Custodial Agreement and this Agreement is:

                    Deutsche Bank National Trust Company
                    1761 East St. Andrew Place
                    Santa Ana, CA 92705-4934
                    Attention: Mortgage Custody SV051C

          7. This Agreement shall be construed in accordance with the
substantive laws of the State of New York (without regard to conflict of laws
principles) and the obligations, rights and remedies of the parties hereunder
shall be determined in accordance with such laws, except to the extent preempted
by federal law.

          8. No term or provision of this Agreement may be waived or modified
unless such waiver or modification is in writing and signed by the party against
whom such waiver or modification is sought to be enforced.

          9. For the purpose for facilitating the execution of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute and be one
and the same instrument.

          10. The Parties ratify the Custodial Agreement as amended by this
Agreement.

          11. Capitalized terms used but not defined in this Agreement but that
are defined in he Custodial Agreement shall have the meanings ascribed to them
in the Custodial Agreement.

                         [signatures on following page]

                                        4

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          IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their duly authorized officers as of the date first above written.

                                        DEUTSCHE BANK NATIONAL TRUST
                                        COMPANY, as Custodian

                                        By: /s/ Christopher Corcoran
                                            ------------------------------------
                                        Name: Christopher Corcoran
                                        Title: Vice President

                                        SOVEREIGN BANK

                                        By: /s/ Dean G. DiGiovanni
                                            ------------------------------------
                                        Name: Dean G. DiGiovanni
                                        Title: Vice President

                                        HANOVER CAPITAL MORTGAGE HOLDINGS, INC.

                                        By: /s/ Irma N. Tavares
                                            ------------------------------------
                                        Name: Irma N. Tavares
                                        Title: Chief Operating Officer

                                        HANOVER CAPITAL PARTNERS 2, LTD.

                                        By: /s/ Joyce S. Mizerak
                                            ------------------------------------
                                        Name: Joyce S. Mizerak
                                        Title: President

                                        5

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                                   EXHIBIT A

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                                   EXHIBIT B

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                                   EXHIBIT C

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                                   EXHIBIT D

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