First Family Mortgage Corp. v. Earnest

WELLFORD, Circuit Judge.

Defendants-third party plaintiffs in these several mortgage foreclosure actions seek to defend against foreclosure actions against them and their residences by suing the Veterans’ Administration (VA), which insured the mortgages at issue, for alleged failure to monitor the mortgagees’ servicing activities and to review adequately the prospects of taking assignment of the mortgages. The district court dismissed the third-party complaints against the VA on the grounds that no cause of action lies for judicial review of the VA’s failure to take foreclosure-avoidance…