In late 2023, Texas Capital Bank (TCB) sued Ginnie Mae and HUD, claiming the government agency improperly extinguished its lien on HECM collateral. After 16 months, Judge Matthew Kacsmaryk ruled in favor of Ginnie Mae, asserting that Congress authorized its actions regarding mortgage extinguishment. TCB announced plans to appeal, highlighting concerns that this ruling enables Ginnie Mae's potential unlawful seizures that could negatively impact seniors reliant on reverse mortgages.
The dispute over HECM-backed Securities (HMBS) tails did not override Ginnie Mae’s authority over mortgages, a ruling expressed by Judge Matthew Kacsmaryk on April.
Texas Capital Bank argued the ruling represents an unlawful seizure by Ginnie Mae, warning this could impact seniors dependent on the reverse mortgage program.
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