Ginnie Mae’s Extinguishment of Mortgage Tails

Podcast: Swear on the Stand · Daniel W. Swear

Opublikowano: 2026-10-09

This legal dispute centers on a federal appeal regarding mortgage-backed securities and the authority of Ginnie Mae to extinguish a bankrupt lender's mortgage interests. When a reverse mortgage issuer defaulted, Ginnie Mae assumed control of the underlying loans, which effectively wiped out a third-party lender's security interest in unsecuritized mortgage balances known as tails. The appellate court affirmed the district court's judgment, concluding that Ginnie Mae acted fully within its statutory and contractual authority. Furthermore, the court held that the third party's tort claim was barred by sovereign immunity and that its arbitrary-and-capricious claim under the Administrative Procedure Act...