Saticoy Bay LLC Series 9641 Chrstine View v. Federal National Mortgage Ass’n

In this quiet title action, the Supreme Court held (1) a regulated entity like the Federal National Mortgage Association (Fannie Mae) has standing to assert 12 U.S.C. 4617(j)(3) - the Federal Foreclosure Bar (the FFB) - in a quiet title action; (2) the FFB preempts Nev. Rev. Stat. 116.3116, which allows a homeowners’ association (HOA) foreclosure on a superpriority lien to extinguish a first deed of trust; and (3) the FFB invalidates any purported extinguishment of a regulated entity’s property interest while under the conservatorship of the Federal Housing Finance Agency (FHFA) unless the FHFA affirmatively consents.The Morenos obtained a home loan secured by a deed of trust on Las Vegas Property. The deed of trust was assigned to Fannie Mae. When the Morenos failed to pay their HOA dues, Saticoy Bay LLC Series 9641 Christine View (Saticoy Bay) purchased the property at a HOA foreclosure sale. Saticoy Bay then brought suit against Fannie Mae to quiet title. Summary judgment was granted for Fannie Mae. The Supreme Court affirmed, holding (1) the FFB protected the deed of trust from extinguishment because Fannie Mae was under the FHFA’s conservatorship at the time of the foreclosure sale; and (2) absent the FHFA’s affirmative relinquishment, Saticoy Bay’s interest in the property was subject to Fannie Mae’s deed of trust. View "Saticoy Bay LLC Series 9641 Chrstine View v. Federal National Mortgage Ass’n" on Justia Law