Biden’s FHFA nominee Sandra Thompson has made it clear that the agency can’t end the conservatorships without help from the Departments of Treasury and Justice and, most importantly, Congress itself.
Plaintiffs in Collins v. Yellen promptly informed the Fifth Circuit Court of Appeals of the former president’s recent letter to Sen. Rand Paul, R-KY, possibly forestalling a decision by the court.
Even though the Supreme Court issued its decision in the Collins case two months ago, lawyers for both the shareholders and the government prepare to make many of the same arguments again before the Fifth Circuit.
Changes to Fannie’s loan agreements allow the company to more closely monitor compliance with OFAC rules and anti-money laundering and anti-corruption statutes.
Although most housing advocates applauded the Supreme Court’s Collins decision, shareholders argue the justices ignored key points. Nevertheless, legal experts say there’s little chance the plaintiffs will prevail when the case returns to circuit court.