Skip to main content

Supreme Court Declines to Hear GSE Investors’ Case

Feb 21, 2018
Swiss-based bank UBS’ announcement that the Department of Justice (DOJ) was preparing a civil action related to 40 residential mortgage-backed securities (RMBS) deals from 2006 through 2007 came to fruition sooner than later

The U.S. Supreme Court has declined to consider litigation brought by Fannie Mae and Freddie Mac shareholders that accused the government of overstepping its authority when redirecting the government-sponsored enterprises’ profits to the Treasury Department following the 2008 enactment of federal conservatorship.
 
According to a Reuters report, the justices’ decision leaves in place a 2017 U.S. Court of Appeals ruling stating that investors led by the now-defunct hedge fund Perry Capital could not pursue legal claims accusing the government in this case. That court said investors in Fannie Mae and Freddie Mac were able to continue the pursuit some damages claims, including for breach of contract.
 
The appeals court, in its ruling from last year, said the government gained its legal authority to channel Fannie Mae and Freddie Mac’s profits under a 2008 law that authorized the conservatorship.

 
About the author
Published
Feb 21, 2018
DOJ Opens Criminal Investigation Into NY AG Letitia James Over Mortgage Fraud Claims

Investigation follows April referral by FHFA Director Bill Pulte; potential charges include wire, mail, and bank fraud

May 09, 2025
Federal Layoffs Help Drive Record 25% Surge In D.C. Housing Inventory

Cuts at mortgage, housing-related agencies help spur government employee exodus from the nation’s capital

May 07, 2025
Undocumented, But Not Unmortgageable

As immigration enforcement intensifies, lenders must decide if ITIN mortgages are too risky — or too valuable to ignore

Freddie Mac’s Net Income Up By $28M To $2.8B For Q1 2025

GSE sees chance to ‘strip away unnecessary bureaucracy and eliminate non-essential activities’ to drive tech investments, lower origination costs

May 01, 2025
What The CFPB’s 2025 Priorities Memo Means For Lenders

As mass layoffs at the agency are paused, law firm Garris Horn’s Senior Partner calls memo’s info, detail a ‘huge win’

CFPB Changes Course, Reportedly Chops Down Staff

Consumer finance watchdog’s headcount reportedly at about 12% as internal memo calls for focus on mortgages, big banks