July 2018

Friday July 20 2018

DS News: Public Policy Think Tank Discusses Future of GSEs

National Law Review: Does the Fifth Circuit’s decision finding the FHFA is unconstitutionally structured presage a similar fate for the CFPB?

Mortgage News Daily: FHFA Ruled Unconstitutional, but Net Sweep Prevails

Thursday July 19 2018

Update in Angel vs. Fannie Mae, et al: The Clerk made a notation on the Court docket indicating that Mr. Angel’s case has been reassigned to Judge Lamberth.

Investors Unite: Fifth Circuit Court of Appeals Upholds The Net Worth Sweep, Exposes Taxpayers

Seeking Alpha: Fannie Mae: The Boys Are Back In Town

Wednesday July 18 2018

New filing in Bhatti vs. FHFA, click here to view.

Peter Chapman writes, “The Eighth Circuit received and docketed the Bhatti Plaintiffs’ appeal asking for review of Judge Schiltz’s order dismissing their lawsuit in Minnesota.  The Eighth Circuit has directed the Bhatti Plaintiffs to file their opening brief by Sept. 4, 2018.”

Washington Examiner: Government caretaker of Fannie and Freddie is unconstitutional, federal court rules

American Banker: FHFA leadership structure is unconstitutional: Judges

Texas Lawyer: Federal Housing Finance Agency, ‘Not Accountable to the President,’ Deemed Unconstitutionally Structured

Housing Wire: Court of Appeals declares FHFA structure unconstitutional

American Action Forum: A Shock To The GSE Reform World

National Mortgage Professional: Federal Court Declares FHFA Structure Unconstitutional

Fox Business: Fed’s Powell supports jettisoning Fannie Mae and Freddie Mac

Housing Wire: Housing finance reform should fix what’s broken

Reuters: Fannie, Freddie shares dip after Fed’s Powell remarks

Housing Wire: Fed Chair Powell: GSE reform essential for U.S. economy

Market Watch: Fannie, Freddie drift lower as Powell says housing should be off government books

Tuesday July 17 2018

New filing in Collins vs. FHFA, click here to view.

Peter Chapman writes, “The Fifth Circuit released its opinion today finding that FHFA is unconstitutionally structured.  Nevertheless, the Fifth Circuit also finds that sec. 4617(f) of HERA blocks shareholders from complaining about the Net Worth Sweep while the GSEs are in conservatorship.  The three judges serving on the panel reviewing Judge Atlas’ decision don’t see eye-to-eye on everything.”

Reason: Federal Court Holds FHFA Unconstitutional

Market Watch: Can the mortgage market predict the presidency?

Monday July 16 2018

Junior preferred shareholder-plaintiff Josh Angel released a paper following FHFA, Fannie and Freddie’s filing of their motion to dismiss his lawsuit.  In this paper, Mr. Angel outlines his reasoning that the GSEs’ preferred shares had and still have an implicit federal government guaranty of payment and sets the stage for a response he’ll file by the Sept. 10 deadline. A copy of Mr. Angel’s paper may be viewed here.

The Economic Times: Ten years of the US financial crisis: The days that roiled the world markets

Friday July 13 2018

New filing in Collins vs. FHFA, click here to view.

Peter Chapman writes, “FHFA delivered a copy of the order Judge Schiltz entered dismissing the Bhatti Plaintiffs’ lawsuit to the Fifth Circuit.”

New filing in Jacobs vs. FHFA, click here to view.

Peter Chapman writes, “The Third Circuit has tentatively scheduled oral argument in Jacobs v. FHFA on Sept. 5, 2018, in Philadelphia, but might be rescheduled for another day that week. ”

New filing in Bhatti vs. FHFA, click here to view.

Peter Chapman writes, “Judge Schiltz entered his order dismissing the Bhatti Plaintiffs’ lawsuit this past week. The Bhatti Plaintiffs have filed a notice of appeal indicating they will ask the Eighth Circuit (where the Saxton case is currently pending) to review the decision.”

New filings in Angel vs. Fannie Mae, et al.

Peter Chapman writes, “FHFA delivered two motions to the U.S. District Court yesterday:

A) A request to have Mr. Angel’s lawsuit transferred from Judge Boasberg to Judge Lamberth. A copy of the request may be viewed here.

B) a motion to dismiss Mr. Angel’s lawsuit, saying that his claims are time-barred, there is no implicit guaranty, and claims can’t be asserted against the GSEs’ directors. A copy of the motion may be viewed here.

Washington Examiner: Mnuchin rebukes Fannie and Freddie, aims for reform next year

Fox Business: Mortgage giants threaten financial stability

National Mortgage News: Why Fannie and Freddie may need more Treasury bailout cash

Newsmax: Hensarling: Financial Woes May Grow Without Housing Finance Reform

Thursday July 12 2018

New filing in Bhatti vs. FHFA, click here to view.

Peter Chapman writes, ”

Wednesday July 11 2018

New filing in Rop vs. FHFA, click here to view.

Peter Chapman writes, “The Rop Plaintiffs tell Judge Maloney that the Seventh Circuit’s Roberts opinion neither addresses nor undermines the constitutional claims presented in this lawsuit challenging FHFA’s freedom to do whatever it pleases without oversight by at least one of the three branches of our government.”

New filing in Fairholme vs. U.S., click here to view.

Peter Chapman writes, “Judge Sweeney entered an order on June 21 extending the briefing schedule on the government’s omnibus motion to dismiss as requested.”

New filing in Bhatti vs. FHFA, click here to view.

Peter Chapman writes, “Bhatti Plaintiffs delivered copies of decisions in Lucia v. SEC and CFPB v. RD Legal to Judge Schiltz, saying they are “relevant to both the merits of Plaintiffs’ claim that FHFA is unconstitutionally structured and whether Mr. DeMarco’s status as an Acting Director changes the analysis for purposes of that claim.”

New filing in Collins vs. FHFA, click here to view.

Peter Chapman writes, “In a letter addressed to the Fifth Circuit on June 27, 2018, FHFA discounts and dismisses the significance of the recent decisions in Lucia v. SEC amd CFBP v. RD Legal.”

New filings in Angel vs. Fannie Mae, et al.

The parties presented the U.S. District Court of D.C. with a stipulation providing that FHFA, Fannie and Freddie will file a motion to dismiss by July 12, Mr. Angel will file any response by September 10, and any reply will be filed by October 10. A copy of the stipulation may be viewed here.

A copy of Judge Boasberg’s order adopting the parties’ briefing schedule may be viewed here.

Scotsman Guide: GSE reform starts with a recapitalization plan

Tuesday July 10 2018

Inside Mortgage Finance: Pershing Square Tells Investors to Have Faith in the GSEs (Really)

Monday July 9 2018

Pensions & Investments: Fannie Mae, Freddie Mac privatization would affect many real estate portfolios

Thursday July 5 2018

National Mortgage News: How private-label investors are beating the GSEs at their own game