NERIS MONTILLA, on behalf of herself and all others so similarly situated; MICHAEL KYRIAKAKIS, on behalf of himself and all others so similarly situated, Plaintiffs, Appellants, ROSELIA MONTUFAR, on behalf of herself and all others so similarly situated; RUBEN VELASQUEZ, on behalf of himself and all others so similarly situated, Plaintiffs, v. FEDERAL NATIONAL MORTGAGE ASSOCIATION; FEDERAL HOUSING FINANCE AGENCY, Defendants, Appellees, MR. COOPER, f/k/a Nationstar Mortgage, LLC; SETERUS, INC.; C.I.T. BANK, N.A., Defendants., 999 F.3d 751

Summary

HOLDINGS: [1]-When the Federal Housing Finance Agency (FHFA) became the government-sponsored enterprises' (GSEs) conservator, one of the rights it succeeded to was the GSEs' private contractual right to nonjudicially foreclose on the homeowners' mortgages, which FHFA instructed the GSEs' loan servicers to exercise; [2]-After stepping into the GSEs' shoes under the Housing and Economic Recovery Act of 2008 (HERA) and exercising their private contractual rights to nonjudicially foreclose on the homeowners' properties, FHFA did not act as the government; [3]-FHFA was not acting as the government in its capacity as the GSEs' conservator; [4]-FHFA's temporary conservatorship over the GSEs did not constitute permanent authority, and neither HERA nor Treasury's agreements with the GSEs' required the government to permanently retain its interest in them.