Opinion ID: 690321
Heading Depth: 2
Heading Rank: 1

Heading: Circumstances Beyond Mortgagor's Control

Text: 18 Pozzie's principal contention on appeal is that her discharge was outside her control because it came out of the blue. She argues that in light of her record of nearly fifteen years of service, her glowing performance reviews, her employer's prior tolerance of her tardiness, and her previous supervisor's willingness to grant her flexible working hours to accommodate her commute, she had no notice that her job was in jeopardy and thus lacked time to bring her fate within her control. 1 19 Although the phrase circumstances beyond the mortgagor's control is not defined in either 12 U.S.C. Sec. 1715u or 24 C.F.R. Sec. 203.650(a), HUD's guidelines (as set forth in the HUD Handbook) do identify examples of qualifying reasons for default. These examples include [d]ecreases in family income caused by unemployment or underemployment; loss, reduction or delay in receipt of Federal, state, municipal benefits ... or of private benefit payments ...; loss of support payments; or other loss of income because of divorce, illness or death. HUD Handbook No. 4330.2 REV-1, Mortgage Assignment and Processing Secretary-Held Servicing, at p. 2-5, Sec. 2-9(A)(2)(a) (March 1991). These examples have been described by the court in Brown v. Lynn, 385 F.Supp. 986, 1000 (N.D.Ill.1974), as reflecting the necessary flexibility to deal with the inevitable temporary crises such as illness, temporary unemployment, etc., which all involved in the program knew would occur. Accord In re Madison, 60 B.R. 837, 839 (E.D.Pa.1986); Grasty v. United States Dep't of Hous. & Urban Dev., 636 F.Supp. 912, 917 (E.D.Pa.1985). 20 We are unaware of any case that addresses whether a mortgagor's default resulting from her discharge for constant tardiness and unauthorized overtime work qualifies as a circumstance beyond the mortgagor's control. 2 Based upon our review of the administrative record, we agree with the district court that HUD could rationally conclude that Pozzie's dilemma was of her own making and subject to her own control. The record establishes that Pozzie's employer gave her numerous warnings about arriving late for work and working unauthorized overtime. In her 1990 performance review, for instance, Pozzie was advised by her supervisor to stop working overtime without the permission of her manager and to improve upon her long-term tardiness problem. The record also reveals that since 1988, Pozzie had received warnings for tardiness and insubordination on eight separate occasions, four of which occurred in the final two months before her discharge. Pozzie cannot point to any evidence in the record to show that the basis for her discharge was outside her control or that HUD's final decision lacked a factual basis. We therefore agree with the district court that it was neither arbitrary nor capricious for HUD to conclude that Pozzie's termination was not caused by circumstances beyond her control.