Will Fannie Mae Create a Rush to Federal Court?

Nov 22, 2016

Attorney Keith Poliakoff comments on an impending Supreme court decision on whether Fannie Mae can be sued in both state and federal court. Law360 reports that the nation's high court is considering a narrow question of how Fannie Mae’s decades-old congressional charter should be interpreted. At issue is a 1954 amendment that authorizes Fannie "to sue and to be sued, and to complain and to defend, in any court of competent jurisdiction, state or federal." According to Law360, a 2014 ruling by the Ninth Circuit interpreted those words to find that the federally backed mortgage financing enterprise could dictate the forum — state or federal — of its choice.

In the present case, the circuit court allowed Fannie to take a foreclosure battle filed by a pair of homeowners in California state court and remand it to federal court. Legal experts say that a decision to uphold the Ninth Circuit's ruling could shift over 60,000 present Fannie Mae cases, and future cases to federal court, which they say is Fannie's preferred venue. 

Keith M. Poliakoff, co-chair of Arnstein & Lehr LLP's government relations practice group, had this to say,

The high court has the difficult decision of weighing not just the language of the charter, but also the potential for a logjam in federal court should it uphold the Ninth Circuit's decision.

To read more about this subject please read the Full Article

Latest News

'Pain & Confusion' In Affordable Housing Market Under Trump

President Trump said repeatedly during his campaign that he’d like to lower the corporate tax rate from 35 percent to 20 percent. What is the broader...

Read More

Will Fannie Mae Create a Rush to Federal Court?

Attorney Keith Poliakoff comments on an impending Supreme court decision on whether Fannie Mae can be sued in both state and federal court. Law360...

Read More

J-School Grad Followed His Father's Footsteps Into Municipal Law

Keith Poliakoff was interviewed by Daily Business Review. The following is an excerpt from the original article, which outlines Poliakoff's history...

Read More

Alvey v. City of North Miami Beach

Insufficient Evidence to Support City Rezoning Resolution The Third District Court of Appeal held that the Developer failed to provide any evidence,...

Read More

High Court Eminent Domain Case May Offer States Clarity

Attorney Keith Poliakoff comments on the high court's decision to hear an eminent domain case concerning a family-government dispute over adjacent...

Read More

About Us

Keith Poliakoff is a partner in the Fort Lauderdale office of Arnstein & Lehr LLP and co-chair of the firm’s Government Relations Practice Group. As a well-known and respected attorney in Broward County, he has considerable experience with all aspects of Florida governmental entities.