Bennett, et al v. Donovan

Plaintiffs, two widowed spouses of homeowners with reverse-mortgage contracts, brought suit against the Secretary of HUD, alleging that HUD's regulation defining the conditions under which it would insure a reverse-mortgage agreement was inconsistent with the applicable statute. The court held that the district court correctly reasoned that if relief for plaintiffs' injuries depended on the independent actions of the lenders, then plaintiffs would lack standing. The court held, however, that assuming the regulation was unlawful, HUD itself had the capability to provide complete relief to the lenders and mortgagors alike, which eliminated the uncertainty of third-party action that would otherwise block standing. Because the court decided that plaintiffs had standing, the court need not consider their alternative argument. Accordingly, the court reversed and remanded for further proceedings. View "Bennett, et al v. Donovan" on Justia Law