Document Type
Article
Publication Date
Spring 2014
Keywords
Fannie Mae, Freddie Mac, Federal Housing Finance Agency, Mortgage market, Perry Capital, Fairholme Funds, Housing and Economic Recovery Act of 2008, Office of Federal Housing Enterprise Oversight, Government-sponsored enterprise
Disciplines
Banking and Finance Law | Legislation | Securities Law
Abstract
The fate of Fannie Mae and Freddie Mac are subject to the vagaries of politics, regulation, public opinion, the economy, and not least of all the numerous cases that have been filed in 2013 against various government entities arising from the placement of the two companies into conservatorship. This short article will provide an overview of the last of these. The litigation surrounding Fannie and Freddie’s conservatorship raises all sorts of issues about the federal government’s involvement in housing finance. These issues are worth setting forth as the proper role of these two companies in the housing finance system is still very much up in the air. The plaintiffs, in the main, argue that the federal government has breached its duties to preferred shareholders, common shareholders, and potential beneficiaries of a housing trust fund authorized by the same statute that authorized their conservatorships. At this early stage, it appears that the plaintiffs have a tough row to hoe.
Recommended Citation
David Reiss, "An Overview of the Fannie and Freddie Conservatorship Litigation," 10 NYU Journal of Law & Business 479 (Spring 2014)
Comments
This article predates the author's affiliation with Cornell Law School.