587 F. App'x 273
6th Cir.2014Background
- Rubin and her then-husband defaulted on a mortgage secured by their West Bloomfield home.
- MERS held the mortgage; MERS later assigned it to BAC, which served Fannie Mae/BANA interests.
- BAC pursued foreclosure; BANA purchased at sheriff's sale and quitclaimed to Fannie Mae.
- FHFA, as conservator for Fannie Mae, intervened in the eviction action that followed the foreclosure.
- Case was removed to federal court; FHFA and Fannie Mae moved to dismiss and the district court granted the motion.
- Court affirmed dismissal, holding no viable claim under Rule 12(b)(6) or state-law grounds after redemption period elapsed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Fannie Mae is a state actor for due process purposes | Rubin asserts due process rights because Fannie Mae acts as a state surrogate | Fannie Mae is not a state actor, even under FHFA conservatorship | Fannie Mae is not a state actor; no Fifth Amendment violation |
| Whether the sale price violated Michigan law on fairness of sheriff’s sale | Rubin claims $448,851.61 was over fair market value | Price compliance under § 600.3228; no proof of fraud or irregularity | Claim not addressed due to lapse of redemption period and lack of fraud/irregularity tied to foreclosure |
| Whether redemption period issues bar claims after lapse | N/A | Redemption rights extinguish post-period; fraud/irregularity needed | Post-redemption claims limited; court declined to apply § 600.3228 absent foreclosure-related fraud/irregularity |
Key Cases Cited
- Mik v. Federal Home Loan Mortgage Corp., 743 F.3d 149 (6th Cir. 2014) (Freddie Mac not a state actor; supports non-state-actor conclusion)
- Lebron v. Nat’l R.R. Passenger Corp., 513 U.S. 374 (1995) (permanent government control requisite for state actor status; FHFA conservatorship temporary)
- Dias v. Fed. Nat’l Mortg. Ass’n, 990 F. Supp. 2d 1042 (D. Haw. 2013) (district court holding not state actor; aligns with Mik)
- Lopez v. Bank of America, N.A., 920 F. Supp. 2d 798 (W.D. Mich. 2013) (not a state actor; foreclosure actions not due-process violations)
- Herron v. Fannie Mae, 857 F. Supp. 2d 87 (D.D.C. 2012) (reaffirms non-state-actor status of GSEs under FHFA)
- Conlin v. Mortg. Elec. Registration Sys., Inc., 714 F.3d 355 (6th Cir. 2013) (post-foreclosure redemption and fraud standards; relates to setting aside foreclosure)