Radatz v. Fed. Nat’l Mortgage Ass’n

Plaintiff filed a class action complaint alleging that Federal National Mortgage Association (Fannie Mae) failed timely to record in the appropriate county recorder’s office the satisfaction of her residential mortgage within ninety days after payoff, as required by Ohio Rev. Code 5301.36(B). After the class was certified, the Federal Housing Finance Agency (FHFA) issued a cease-and-desist order (consent order) to Fannie Mae. Fannie Mae moved to dismiss for lack of subject matter jurisdiction. The trial court dismissed the complaint for lack of subject matter jurisdiction. The court of appeals reversed, concluding that the FHFA consent order did not divest the trial court of jurisdiction. The Supreme Court affirmed, holding (1) the consent order did not preclude the trial court from exercising jurisdiction under 12 U.S.C. 4635(b), the federal statute governing judicial review of FHFA orders; but (2) 12 U.S.C. 4617(j)(4) barred the trial court from ordering Fannie Mae to pay damages under section 5301.36(C) while Fannie Mae is under FHFA’s conservatorship. View "Radatz v. Fed. Nat’l Mortgage Ass’n" on Justia Law