lawyer Ginnie Mae replied Texas Capital Bank (Pending) The government files a motion to move the case to another venue. They say the banks’ own filings on the matter avoid key questions the government is trying to raise about the original terms, which set out where any relevant legal action should take place.
Separately, the government has been granted additional court time to respond to the bank’s motion for partial summary judgment in TCB’s favor, according to court documents reviewed by TCB. house lineReverse Mortgage Daily (RMD).
“TCB attempted to avoid agreeing to the forum-selection provision by arguing that Ginnie Mae was unable to enforce the provision and that the provision did not apply to the claims in this lawsuit,” government attorneys said in a filing. “Both arguments are incorrect. “
TCB previously argued that Ginnie Mae was unable to enforce the forum selection clause at the heart of the agreement’s dispute. The bank stated that the terms are between TCB and reverse mortgage financing (RMF), the bankrupt reverse mortgage lender at the center of the situation.
Since the government is not a party to the agreement, its provisions (and by extension the forum selection clause) cannot be enforced by the government.
Ginnie Mae disagrees.
“Ginnie Mae owns the ownership of the assets involved in the agreement. TCB’s rights under the contract ultimately originate from Ginnie Mae. TCB’s rights under the contract are subject to Ginnie Mae’s rights. TCB alleging that ‘Ginnie Mae actively participated’ in negotiating the contract,” the filing reads.
The government claims this amounts to the bank claiming that TCB is proposing “different standards” to further differentiate between controversial tail agreements and questionable collateral. They go on to argue that the oft-cited Tail Agreement “expressly reserves Ginnie Mae’s enforcement rights over Tail” and reiterate that the agreement requires any resulting litigation to proceed in Dallas County, rather than in Texas as it currently does. Marillo conducts.
“This case has nothing to do with Amarillo,” a government attorney said. “The court should hold TCB true to its word and transfer the case to the Dallas division, where TCB is headquartered.”
The government claimed that the bank’s interest in the collateral “derives from Ginnie Mae” and that “TCB’s rights and remedies are subject to the rights of Ginnie Mae.”
this United States Supreme Court Forum selection provisions have previously been made mandatory. Government lawyers said in an initial court change application filed in June that despite the agreement between TCB and RMF, the bank’s dispute with the government related to the tail agreement, meaning that provision was enforceable in this case.
Separately, Ginnie Mae previously requested more time to respond to a partial summary judgment motion filed by the bank (which had already been granted once), but was again granted by Magistrate Judge Lee Ann Reno. approve. Ginnie Mae now has until August 8 to respond to the motion.
TCB filed a lawsuit against Ginnie Mae in October 2023, accusing the state-owned company of “foreclosing TCB’s first-priority lien on tens of millions of dollars of collateral without consideration of any consideration.” The lien arises from [FHA]- Sponsorship [HECM] program.”
Ginnie Mae reportedly sought help from TCB to avoid “catastrophic damage to the HECM program.” TCB said that in return for the loan to RMF, it obtained a first-priority lien on “certain HECM collateral,” which the bank called “critical” because in the absence of the lien, it was the only collateral TCB could rely on. The product is a bankrupt company of RMF.
In subsequent filings, Ginnie Mae denied the allegations beyond material facts related to the agreements signed by the parties and the regulation of the HMBS program. Although Ginnie Mae sought to dismiss the case, the trial judge allowed much of the case to proceed and dismissed only a small portion of the original complaint.
The case is being closely watched by the reverse mortgage industry. Ginnie Mae’s Home Equity Conversion Mortgage (HECM) Backed Securities (HMBS) program is a key liquidity and investment driver for the entire industry because it allows pooled reverse mortgages to be sold to investors. The lawsuit comes as Ginnie Mae develops its new HMBS program.
