Judge Tosses Fannie, Freddie Investors’ ‘Net Worth Sweep’ Suit Claims

Mealey's (December 1, 2022, 2:27 PM EST) -- HOUSTON — A federal judge in Texas dismissed removal restriction claims brought by Fannie Mae and Freddie Mac shareholders in a lawsuit against the U.S. Department of Treasury and the Federal Housing Finance Agency (FHFA) and their directors regarding whether a third amendment to preferred stock purchase agreements (PSPAs) between the federal parties and Fannie Mae and Freddie Mac’s appointed conservator is barred by the succession and anti-injunction clauses of the Housing and Economic Recovery Act of 2008 (HERA), ruling that the shareholders failed to properly plead compensable harm “or the Court’s ability to provide the requested relief.”...