Fifth Circuit lets Ginnie Mae extinguish third-party reverse mortgage liens

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BREAKING — Mortgage Professional America reports that the Fifth Circuit has ruled Ginnie Mae may extinguish third-party reverse mortgage liens, a decision that follows Texas Capital's $28 million loan against reverse mortgage tails being taken by the government entity. The ruling clarifies the priority of Ginnie Mae's claims in the reverse mortgage secondary market and leaves private creditors holding extinguished positions.

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