§5229 Judicial Review and Related Matters

Summary

Limits when courts can stop the Secretary’s actions under this chapter and sets quick deadlines for those court requests. Final actions by the Secretary can be reviewed under chapter 7 of title 5, and a court can overturn them if they are unreasonable, a misuse of discretion, or break the law. Courts cannot issue an injunction or other equitable relief against the Secretary for actions under sections 5211, 5212, 5216, and 5219 except to fix a Constitutional violation. Requests for a temporary restraining order must be decided within 3 days. Requests for preliminary or permanent injunctions must be handled on an expedited schedule, following rule 65(b)(3) for preliminary orders and rule 65(a)(2) when possible to combine the trial with the injunction hearing. If a court issues an injunction for those sections, the injunction is automatically stayed unless the Secretary asks a higher court for a stay within 3 calendar days. People who sell off their assets tied to these programs cannot bring claims against the Secretary except as allowed by the review rule above or by a written contract. Mortgage terms stay subject to the usual claims and defenses even when the Secretary buys loans. The Secretary’s actions do not cut off claims or defenses for other people. A servicer must review whether a loan modification is likely to give a higher net present value than foreclosure for all investors. A servicer is treated as acting in the investors’ best interests if it takes reasonable loss-mitigation steps (including accepting partial payments) and agrees to or carries out a modification.