Texas Capital Bancshares has sued Ginnie Mae, claiming that the agency canceled the bank’s priority liens on collateral worth tens of millions of dollars. The cancellation happened after the bank agreed to provide a rescue loan to Reverse Mortgage Funding LLC.
Federal housing authorities persuaded Texas Capital Bancshares to loan $28 million to help the bankrupt reverse-mortgage provider fund payments to elderly homeowners. But then they then went back on their promises of financial support, according to the lawsuit.
The company also stated that its Texas Capital Bank unit acted “on an emergency basis, in an effort to protect thousands of senior citizen mortgagors,” but “weeks later, Ginnie Mae reversed course and purported to leave TCB empty-handed.”
Texas Capital stated that the danger is that this case could cause resistance to extending this type of financing to seniors, which in turn could threaten HECM financing altogether.
Texas Capital is the 64th largest lender in the US with assets worth almost $29 billion. Its recent strategic transformation focuses on providing full-scale financial services with an ETF launched in July that bets on economic growth in Texas.
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