The Lawsuit Between Texas Capital Bank, HUD, and Ginnie Mae: Trial Set for September 2025
A lawsuit involving Texas Capital Bank (TCB), the U.S. Department of Housing and Urban Development (HUD), and Ginnie Mae over a dispute regarding Home Equity Conversion Mortgage (HECM)-backed Securities (HMBS) is scheduled for trial in September 2025. This information was revealed in court filings reviewed by HousingWire’s Reverse Mortgage Daily (RMD).
Magistrate Judge Lee Ann Reno of the U.S. District Court for the Northern District of Texas in Amarillo has informed the parties involved about the revised scheduling for the potential trial if a settlement is not reached before that time.
Key Points:
- Deadline in December 2024 for each side to establish a bench of experts
- Final deadlines for expert witnesses by early 2025
- All factual discovery to be completed by March 14, 2025
- Mediation opportunity by April 25, 2025
- Parties advised to be ready for trial by Sept. 19, 2025
TCB filed a suit against Ginnie Mae in October 2023, alleging that the government-owned company had extinguished TCB’s first priority lien on collateral without any consideration. Ginnie Mae sought to dismiss the case, but the presiding judge allowed most of it to proceed.
The lawsuit has implications for the reverse mortgage industry as Ginnie Mae’s HMBS program plays a crucial role in liquidity and investments. The ongoing litigation coincides with the development of a new HMBS program by Ginnie Mae.
It remains uncertain whether current HUD and Ginnie Mae leaders will still be in office by the time the case progresses further, as new leadership changes are expected with a new president taking office in early 2025.