Faiella v. Federal National Mortgage Association

The First Circuit affirmed the district court's grant of summary judgment in favor of the Federal National Mortgage Association (Fannie Mae) in this case regarding the allegedly invalidity of a foreclosure, holding that the Merrill doctrine, which requires a showing of actual authority as a basis for holding a federal instrumentality vicariously liable for the acts of its agents, applied to Fannie Mae. Appellant took out a loan secured by a mortgage on his residence. The lender assigned the mortgage loan to Fannie Mae, and the loan was serviced by Ditech Financial LLC. After the home was foreclosed on, Appellant filed suit. Appellant asserted common-law claims alleging that Fannie Mae was vicariously liable for deceit and negligent misrepresentation committed by Ditech employees. Fannie Mae moved for summary judgment claiming that its liability was pretermitted by the Merrill doctrine. See Federal Crop Insurance Co. v. Merrill, 332 U.S. 380 (1947). The district court agreed and granted summary judgment. The First Circuit affirmed, holding that the Merrill doctrine barred Appellant's suit. View "Faiella v. Federal National Mortgage Association" on Justia Law