Faiella v. Federal National Mortgage Association

Plaistow, N.H. man misses mortgage payment; following a loan servicing rep’s advice, he mails in a check. Alas, the company returns his checks, says it’ll foreclose. He calls the loan rep back, who instructs him to send a cashier’s check. He does so, but the company forecloses anyway. Can he sue Fannie Mae, who appointed the loan servicing company, for service so bad it was tortious? First Circuit: It’s pellucid that Fannie Mae (a sorta gov’t instrumentality) cannot be liable for the unauthorized misdeeds of its agents, so his case is defenestrated.

Tags: 2019, First Circuit, Sovereign Immunity, Tort Law

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