FHFA Statement on HOA Super-Priority Lien Foreclosures
Updated 7/19/18: Bradley Arant Boult Cummings LLP published a blog authored by associates Stephen Parsley and R. Aaron Chastain titled Nevada Courts Provide Additional Guidance on HOA Super Priority Lien Law for Lenders.
Updated 3/23/18: The Washington Post published an article titled D.C. ruling offers good news for condo associations, bad news for banks.
Updated 3/23/18: Bradley Arant Boult Cummings LLP published an article authored by attorney Alex McFall titled HOA Super-Priority Lien Law Preempted by Federal Statute.
Updated 3/20/18: Riker Danzig Scherer Hyland & Perretti LLP posted a blog authored by attorneys Michael R. O’Donnell, Michael Crowley and Dylan Goetsch titled Washington D.C. Appellate Court Holds Foreclosure Of Condominium Lien Extinguished First Mortgage Despite Condominium Association’s Representations To The Contrary.
Updated 3/19/18: Bradley Arant Boult Cummings LLP published an article authored by attorneys Andrew J. Narod, Jon H. Patterson, R. Aaron Chastain and Thomas R. Lynch titled Is a Foreclosure Crisis Looming in Our Nation’s Capital?
Updated 9/6/17: Maurice Wutscher LLP posted a blog by Ralph T. Wutscher titled FYI: 9th Cir Holds Federal Foreclosure Bar Preempts Nevada HOA Superpriority Statute.
Updated 8/29/17: Wolters Kluwer published an article authored by Richard A. Roth, J.D. titled Nevada Homeowner Association’s Superpriority Lien Doesn’t Trump FHFA’s Interest.
Updated 7/27/17: The Las Vegas Review-Journal published an article titled Nevada Supreme Court rulings favor HOAs.
Link to article
Updated 7/6/17: DS News published an article titled Homeowners Associations: The Robin Hood of Foreclosure.
The Nevada Association of Realtors published a report titled Nevada’s Homeowners’ Association Super Priority Lien.
Updated 6/23/17: The Las Vegas Review-Journal published an article titled Nevada high court ruling involves foreclosed Henderson home.
April 21, 2015
Title 12 United States Code Section 4617(j)(3) states that, while the Federal Housing Finance Agency acts as Conservator, “[no] property of the Agency shall be subject to levy, attachment, garnishment, foreclosure, or sale without the consent of the Agency.” This law precludes involuntary extinguishment of Fannie Mae or Freddie Mac liens while they are operating in conservatorships and preempts any state law that purports to allow holders of homeownership association (HOA) liens to extinguish a Fannie Mae or Freddie Mac lien, security interest, or other property interest.
As noted in our December 22, 2014 statement on certain super-priority liens, FHFA has an obligation to protect Fannie Mae’s and Freddie Mac’s rights, and will aggressively do so by bringing or supporting actions to contest HOA foreclosures that purport to extinguish Enterprise property interests in a manner that contravenes federal law. Consequently, FHFA confirms that it has not consented, and will not consent in the future, to the foreclosure or other extinguishment of any Fannie Mae or Freddie Mac lien or other property interest in connection with HOA foreclosures of super-priority liens.
Media: Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030
Consum??ers: Consumer Communications or (202) 649-3811?????