Opinion ID: 4541112
Heading Depth: 3
Heading Rank: 1

Heading: Ginnie Mae’s MBS Program

Text: “[Ginnie Mae] is a corporation wholly owned and con- trolled by the U.S. Department of Housing and Urban 1 Because FMC appeals the dismissal of its Com- plaint for failure to state a claim under RCFC 12(b)(6), the facts recited in this Opinion draw on FMC’s Complaint, “as well as other sources courts ordinarily examine when ruling on Rule 12(b)(6) motions to dismiss, in particular, documents incorporated into the [C]omplaint by reference, and matters of which a court may take judicial notice.” Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308, 322 (2007); see Leatherman v. Tarrant Cty. Narcotics Intelligence & Coordination Unit, 507 U.S. 163, 164 (1993) (“We review here a decision granting a motion to dismiss, and Case: 19-1798 Document: 42 Page: 3 Filed: 06/12/2020 FIRST MORTGAGE CORPORATION v. UNITED STATES 3 Development (‘HUD’).” J.A. 26; see 12 U.S.C. § 1717(a)(2)(A) (creating Ginnie Mae as “a body corporate without capital stock” within HUD). Congress created Ginnie Mae to, inter alia, “provide stability in the secondary market for residential mortgages,” 12 U.S.C. § 1716(1), and “promote access to mortgage credit . . . by increasing the liquidity of mortgage investments and improving the distribution of investment capital available,” id. § 1716(4); see J.A. 29. To this end, Ginnie Mae “is authorized, upon such terms and conditions as it may deem appropriate, to guarantee” MBS and administer the MBS program. 12 U.S.C. § 1721(g)(1); see J.A. 23–24. Under the MBS program, Ginnie Mae “guarantee[s] the timely payment of principal of and interest on securities that are based on and backed by a trust or pool composed of mortgages which are insured or guaranteed by [certain Government agencies].” 24 C.F.R. § 320.1; see J.A. 23–24. Approved private lenders originate or acquire residential mortgage loans insured or guaranteed by certain Government agencies, pool and securitize those mortgages, and sell the securities to investors in the secondary mortgage market. J.A. 23–24, 28; see J.A. 60 (Guaranty Agreement) (providing for the “pool[ing] of mortgages securitized by the [i]ssuer and guaranteed by Ginnie Mae”). Ginnie Mae guarantees the “timely payment of principal and interest on those securities” to investors. J.A. 24. “[Ginnie Mae’s] guaranty . . . is backed by the full faith and credit of the United States.” 24 C.F.R. § 320.1; see J.A. 60 (Guaranty Agreement) (providing that “the full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under [an MBS program] guaranty by Ginnie Mae”). therefore must accept as true all the factual allegations in the complaint.”). Case: 19-1798 Document: 42 Page: 4 Filed: 06/12/2020 4 FIRST MORTGAGE CORPORATION v. UNITED STATES