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Fannie Mae, Freddie Mac Shareholders Get Chance to Prove Damages

Oct. 6, 2021, 3:59 PM

Shareholders in the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation were given a chance by the Eighth Circuit Wednesday to prove that they suffered damages as a result of the leadership structure at the Federal Housing Finance Agency.

The shareholders alleged violations of the appointments clause, the separation of powers, and the non-delegation doctrine.

The U.S. Supreme Court’s recent opinion in Collins v. Yellen addressed most of the issues here, the opinion by Judge Duane Benton said.

The appointment of acting director Edward DeMarco was initially valid, and even if his more than four-year tenure is ...