Reported / Citable
Background
AmeriHome Mortgage Company filed a civil action in U.S. District Court against defendants including Brady and Jillian Williams, the federal government through HUD, and Members Choice Credit Union. The case involved property in which the United States claimed a lien or other interest. AmeriHome asserted federal jurisdiction under 28 U.S.C. § 2410, which concerns foreclosure actions against property in which the United States has an interest.
A magistrate judge issued a Report and Recommendation finding that § 2410 does not establish original subject-matter jurisdiction in federal court. AmeriHome filed an objection, arguing that § 2410 confers jurisdiction whenever the federal government claims an interest in the property at issue.
The Court’s Holding
The district court overruled AmeriHome’s objection and adopted the magistrate judge’s recommendation. The court held that 28 U.S.C. § 2410 does not establish original subject-matter jurisdiction. Instead, § 2410 operates in conjunction with 28 U.S.C. § 1444 and applies only to foreclosure actions initially brought in state court that are then removed to federal court.
The court emphasized that § 2410(a) expressly requires compliance with the conditions in § 1444, which limits its application to foreclosure actions “brought . . . in [] State court.” Because AmeriHome filed the action directly in federal court rather than first in state court, § 2410 could not provide a basis for jurisdiction under 28 U.S.C. § 1331. The case was dismissed without prejudice under Federal Rule of Civil Procedure 12(h)(3).
Key Takeaways
- 28 U.S.C. § 2410 is a removal statute, not an original jurisdiction statute; it permits removal from state to federal court only.
- A case directly filed in federal court cannot rely on § 2410 to establish subject-matter jurisdiction.
- Plaintiffs seeking federal jurisdiction in foreclosure actions involving federal interests must first file in state court and rely on removal, not original federal filings.
Why It Matters
This decision clarifies an important jurisdictional limitation for mortgage servicers and other parties in foreclosure actions where the federal government holds a lien or interest. The ruling constrains access to federal courts for such claims when filed originally in the federal system, requiring instead that practitioners file in state court first and utilize the removal mechanism under § 1444 and § 2410.
The decision reflects the Fifth Circuit’s interpretation that § 2410 is a removal provision addressing the procedural posture of cases in state court, not a substantive grant of original federal jurisdiction. This jurisdictional requirement may affect litigation strategy in foreclosure and real-property disputes involving federal interests.