Government
attorneys
filed
a
motion
for
summary
judgment
—
a
decision
made
by
the
judge
instead
of
a
jury
—
on
Jan.
10
for
“all
remaining
claims
in
this
case.”
They
said
in
their
filings
to
Magistrate
Judge
Lee
Ann
Reno
in
the

U.S.
District
Court
for
the
Northern
District
of
Texas
that
the
court
“has
now
ruled
on
the
merits
that
GNMA
acted
within
its
lawful
authority
when
it
extinguished
the
mortgage
interests
of

Reverse
Mortgage
Funding
(RMF).”

Because
of
that,
TCB “no
longer
has
any
remaining
rights
or
interests
in
the
property
at
issue
in
this
case,”
the
government
said.
This
stems
from

an
October
decision
by
Judge
Matthew
Kacsmaryk,
in
which
TCB
alleges
that
Ginnie
Mae
violated
the
Administrative
Procedures
Act
(APA)
by
extinguishing
its
first-priority
liens
over
certain
reverse
mortgage
collateral.

Kacsmaryk
found
the
argument
unconvincing,
according
to
a
court
filing
that
denied
TCB’s
request.
Ginnie
Mae
“was
within
its
rights
to
extinguish
and
terminate
RMF
and
take
absolute
ownership
of
[the]
mortgage
portfolio,”
Kacsmaryk
said
in
the
October
filing.

That
decision
by
Kacsmaryk
proves
“fatal
to
TCB’s
two
remaining
counts,”
the
government
contended,
making
it
“entitled
to
summary
judgment.”
The
government
believes
that
other
elements
of
the
bank’s
complaint
are
invalid
since
“TCB
cannot
prove
it
had
any
property
rights
that
were
interfered
with,”
and
any
potential
claim
that
the
government
did
not
pay
required
draws
on
the
loans
is
refuted
by
the
official
record,
according
to
government
attorneys.

In
a
motion
filed
jointly
with
the
government,
TCB
has
asked
for
additional
time
to
respond
to
the
summary
judgment
request
in
light
of
Kacsmaryk’s
October
decision.
The
original
deadline
was
Jan.
31,
but
TCB
requested
a
21-day
extension.
Reno
approved
the
request,
extending
the
response
deadline
to
Feb
21,
2025.

The
government
will
have
to
reply
to
TCB’s
response
by
March
14,
2025,
according
to
Reno’s
most
recent
decision
filed
in
court
on
Wednesday.

If
a
summary
judgment
is
denied
and
the
case
proceeds,
Reno
previously ordered
the
parties
to
be
ready
for
trial
by
Sept.
19,
2025.
This
is
not
the
date
for
the
start
of
a
trial
but
the
cutoff
point
at
which
everything
else
laid
out
in
a
scheduling
order
must
be
finalized.
After
that
point,
the
district
judge
will
issue
a
separate
order
regarding
the
actual
date
on
which
a
trial
would
commence.

This
is
the
latest
in
a
lawsuit
that
was

initially
filed
in
October
2023.
TCB
originally
alleged
that
Ginnie
Mae
had
“extinguished,
in
return
for
no
consideration,
TCB’s
first
priority
lien
on
tens
of
millions
of
dollars
in
collateral
stemming
from
the
[FHA]-sponsored
[HECM]
program.”

TCB
contends
this
was
after
Ginnie
Mae
allegedly
turned
to
TCB
to
avoid
“a
catastrophic
disruption
of
the
HECM
program.”
In
return
for
lending
money
to
RMF,
TCB
alleged
it
received
a
first
priority
lien
“on
certain
HECM
collateral.”
The
bank
described
it
as
“critically
important”
since
without
it,
the
only
collateral
TCB
could
rely
on
was
a
bankrupt
company.