Warren v. Government National Mortgage Association
United States Court of Appeals for the Eighth Circuit
611 F.2d 1229 (1980)
Warren (plaintiff) defaulted on a HUD-originated mortgage held by GNMA (defendant), a corporation wholly owned by the federal government and managed by HUD with FHA-insured mortgages; GNMA foreclosed under standard Missouri deed-of-trust procedures using an independent, non-government trustee, and Warren sued claiming the foreclosure violated her Fifth Amendment due process rights given GNMA's federal ownership. The trial court found no federal action, and Warren appealed.
Whether a mortgagor is entitled to Fifth Amendment due process rights before a foreclosure sale if there is a sufficiently close nexus between the federal government and the foreclosure such that it may fairly be treated as government action.