[1] In a unanimous opinion written by Justice Sonia Sotomayor, the Court held that plaintiffs may file lawsuits against Fannie Mae in any state or federal court that is "already endowed with subject-matter jurisdiction over the suit.

"[2] The case arose when two mortgage borrowers filed a lawsuit in state court, which alleged deficiencies in the foreclosure and sale of their home.

"[5][6] District Judge Sidney H. Stein, sitting by designation, dissented, concluding that the sue-and-be-sued clause required an independent source for jurisdiction in cases involving Fannie Mae.

[8] In a unanimous opinion written by Justice Sonia Sotomayor, the Court reversed the Ninth Circuit's ruling and rejected Fannie Mae's assertion that it could automatically remove any case to a federal court.

[9] After reviewing other party-specific sue-and-be-sued clauses, Justice Sotomayor stated that the phrase "court of competent jurisdiction" allowed any court with "an existing source of subject-matter jurisdiction" to hear cases against Fannie Mae.