The article discusses a legal dispute between TCB and Ginnie Mae concerning the latter's authority to extinguish TCB’s first-priority liens on reverse mortgage collateral. Judge Matthew Kacsmaryk ruled in favor of Ginnie Mae, stating its actions were legitimate. However, TCB argues that Ginnie Mae overstepped its statutory powers, claiming it would unjustly appropriate $28 million worth of collateral. TCB insists that due to the complexities of the HECM and HMBS programs, a full factual examination with expert input is necessary before any judgments are made regarding Ginnie Mae's authority.
This stems from an October 2024 decision by Judge Matthew Kacsmaryk, in which TCB alleged that Ginnie Mae violated the Administrative Procedures Act (APA) by extinguishing its first-priority liens over certain reverse mortgage collateral.
In the new filing issued on Feb. 21, TCB said the government's assertion that Ginnie Mae had statutory authority to extinguish TCB's lien on the collateral at issue is incorrect.
The bank also claims that the nature of Ginnie Mae's Home Equity Conversion Mortgage (HECM)-backed Securities (HMBS) program itself demonstrates that the mortgages are divisible.
Acceding to the government's request for summary judgment would enable Ginnie Mae to wipe out tens of millions of dollars of TCB's assets when TCB did absolutely nothing wrong without having a full examination of the facts.
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