5th Circuit:  Secondary Lender Must Have Valid Contract For Contractual Subrogation

Mealey's (August 19, 2019, 1:48 PM EDT) -- NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel on Aug. 15 affirmed a ruling awarding a borrower summary judgment on her quiet title claim against the Federal Home Loan Mortgage Corp. (Freddie Mac), after finding that it was not entitled to contractual subrogation on a loan it obtained from another lender that did not comply with the Texas Constitution because the lender did not sign a form that stated the home’s fair market value (Sylvia Zepeda v. Federal Home Loan Mortgage Corp., No. 18-20336, 5th Cir., 2019 U.S. App. LEXIS 24330)....