A GSE investor in Kentucky lost her case last week when the court dismissed claims that the government damaged Fannie Mae and Freddie Mac by implementing the net worth sweep of the GSEs’ profits. Arnetia Robinson alleged that her investments in Fannie and Freddie were “materially damaged” when the Federal Housing Finance Agency and the Treasury Department amended the existing preferred stock purchase agreement in 2012. According to court records, Robinson was seeking declaratory and injunctive relief that would prevent enforcement of portions of the PSPA. She contended that the sweep violates the Housing and Economic Recovery Act and said the Treasury acted “arbitrarily and capriciously.”
Fannie Mae and Freddie Mac are well underway preparing to implement the Uniform Closing Dataset that will become mandatory in the second half of 2017. A big part of the change is moving to an electronic process to support the Consumer Financial Protection Bureau’s closing disclosure.This month, Fannie announced a new collection service that it said offers flexible options for delivering the UCD file in multiple phases of the business process. It includes the ability to verify data and eligibility electronically. Banks can submit either a single file or batch file, get data quality and eligibility feedback messages, and each submission is...
Freddie is busing potential homebuyers to tour affordable housing properties in Chicago as a way to reach low- to moderate income borrowers and unload foreclosed homes in the city.The event, to be held on Sept. 17, is sponsored by the GSE’s HomeSteps real estate unit and the Chicago Urban League. It will include tips on buying foreclosed properties.HomeSteps is the mortgage giant’s program to sell foreclosed properties. While the program is available across the country, it offers special financing for buyers in only 10 states: Alabama, Florida, Georgia, Illinois, Kentucky, North Carolina, South Carolina, Tennessee, Texas and Virginia.
Plaintiffs in a Fannie Mae and Freddie Mac shareholder case challenging the GSEs’ quarterly earnings sweep dropped some of the charges in their original complaint to bypass the Federal Housing Finance Agency’s motion to consolidate all of the cases. The pair, Gary Hindes and David Jacobs, is looking to dismiss counts that allege derivative breach of contract and other similar claims and instead allege “unjust enrichment” against the Treasury Department. The plaintiffs bought the class action suit focusing on Delaware and Virginia corporate law on behalf of themselves and other stockholders. Court documents in David Jacobs and Gary Hindes v. The Federal Housing Finance Agency...
HFSC Continues to Seek Five-Member Commission for FHFA. During a full committee markup this week, the House Financial Services Committee voted to convert regulatory agencies currently headed by single directors, such as the Federal Housing Finance Agency, along with the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency, into bipartisan, five-member commissions. The HFSC voted to make the Treasury’s one-time GSE privatization study become an annual report/testimony. FHFA Publishes Open Government Plan 2016. The Federal Housing Finance Agency published a document this week highlighting some of the ways it plans to advance the principles of “transparency, participation and collaboration” through open communication and public engagement.
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