The bank accused Ginnie Mae of extinguishing TCB’s first priority lien on millions of dollars in collateral related to the FHA-sponsored HECM program without any compensation.
Ginnie Mae filed for summary judgment in January, stating that the court had previously ruled in its favor regarding the extinguishment of Reverse Mortgage Funding’s mortgage interests.
Following a decision by Judge Matthew Kacsmaryk in October 2024, Ginnie Mae was found to have acted within its rights by terminating RMF and taking ownership of the mortgage portfolio.
In April, the judge ruled in favor of the government, citing Congress’s grant of extinguishment power over mortgages as the basis for his decision.
TCB has vowed to appeal the ruling, expressing concerns about the implications of Ginnie Mae’s actions on the reverse mortgage industry and seniors who rely on the program for financial support.
According to a statement from the bank, allowing Ginnie Mae’s actions to stand could have far-reaching consequences beyond this case, affecting industry participation in similar programs.