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Cendant Mortgage

10637 McClemont Ave, Tujunga, Homes for Sale

cel:818.262.5446 email:800041.lead@cendant.lead Shelley Rizzotti cel:818.516.6409 email:800041.lead@cendant.lead Ewing &amp ...

Supreme Court to Hear Case Involving Where Fannie Can Be Sued

The Supreme Court agreed Tuesday to hear a case regarding a clause in Fannie Mae's corporate charter that awards jurisdiction over every case involving the government-sponsored enterprise to federal courts.

The case, Lightfoot v. Cendant Mortgage Corp., addresses a specific clause in Fannie Mae's charter, which says that the GSE can "sue and be sued, and to complain and defend, in any court of competent jurisdiction, state or federal." The case was initially brought forth by two California women, Beverly Ann Hollis-Arrington and Crystal Monique Lightfoot, after Fannie Mae initiated foreclosure proceedings against Hollis-Arrington's home.

The plaintiffs in the case had originally filed their complaint in California state court, but the case was then shifted to federal court by Fannie Mae. The district court then dismissed all claims.

A divided Ninth U.S. Circuit Court of Appeals decision from October 2014 came down in Fannie Mae's favor, saying that Fannie Mae's charter did grant jurisdiction to federal district courts by citing the decision made in the 1992 case of American Red Cross v. S.G.

Law school dean: US Supreme Court decision to take up Fannie Mae case not surprising

"I think it is quite significant that the solicitor general’s office asked for certiorari to be granted to clarify this confusion," Erwin Chemerinsky, founding dean, law professor and Raymond Pryke Professor of First Amendment Law at University of California Irvine School of Law, said during a Northern California Record email interview. "The solicitor general is the attorney for the United States who represents the government in the Supreme Court. Requests from the solicitor general for Supreme Court review are usually granted."

The U.S. Supreme Court granted the writ of certiorari in Lightfoot v. Cendant Mortgage Corp. on June 28. The case concerns a clause in the government-sponsored mortgage loan company Fannie Mae's corporate charter, which awards to federal courts jurisdiction in any litigation filed by or on behalf of Fannie Mae.

At issue in the case is whether phrase "to sue and be sued, and to complain and to defend, in any court of competent jurisdiction, state or federal" in Fannie Mae's charter grants to federal courts original jurisdiction. Also in question is whether the high court's decision in the 1992 case American National Red Cross v. S.G. should be overturned.

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