Quimbee logo
DMCA.com Protection Status

Federal Home Loan Mortgage Association v. Kelley

306 Mich. App. 487, 858 N.W.2d 69 (2014)

Case BriefRelatedOptions
From our private database of 33,600+ case briefs...

Federal Home Loan Mortgage Association v. Kelley

Michigan Court of Appeals

306 Mich. App. 487, 858 N.W.2d 69 (2014)

Facts

The Federal Home Loan Mortgage Association (Freddie Mac) (plaintiff), a federally chartered corporation, was created in 1970 to increase the availability of mortgages to low- and moderate-income families and promoteing nationwide access to mortgages. Freddie Mac operated in the secondary- mortgage market, buying and securitizing residential mortgages. In 2008, the Federal Housing Finance Agency (FHFA) was created to supervise Freddie Mac and other organizations. Freddie Mac was placed into conservatorship by FHFA for purposes of reorganizing, rehabilitating, or winding up Freddie Mac’s affairs. In 2011, Michigan homeowners Michael R. Kelley (defendant) and Kathryn M. Kelley (defendants) defaulted on their mortgage. Freddie Mac, as investor in the mortgage, had chosen CitiMortgage (CMI) to service the mortgage. CMI foreclosed pursuant to Michigan’s foreclosure-by-advertisement statute, and Freddie Mac purchased the Kelleys’ property at the sheriff’s sale. The statute allowed the borrower to redeem the property within six months after the sheriff’s sale. After the Kelleys failed to redeem the property within the six-month statutory redemption period, Freddie Mac began eviction proceedings. In defending themselves from eviction, the Kelleys challenged the foreclosure, arguing that FHFA’s conservatorship had transformed Freddie Mac into a federal actor, requiring Freddie Mac to follow Fifth Amendment due- process requirements. The Kelleys argued that Freddie Mac had deprived them of their due- process rights by foreclosing by advertisement. The district court determined that Freddie Mac was not a governmental actor, granted Freddie Mac’s motion for summary disposition, and terminated the Kelleys’ possession of the property. The circuit court reversed, and Freddie Mac appealed.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 603,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 603,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 33,600 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 603,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 33,600 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership