Fannie Mae-No Politics (FNMA)

[obiterdictum]

Sorry for the late reply...

Good question. The powers of the FHFA are primarily seated in the Director and not in the agency as an entity. The FHFA does not actually act as single entity like a person though it can be construed in that way wherein a Director does something and that something is deemed to be an act of the FHFA. Thus there are statements like this in HERA 2008:

‘‘(D) POWERS AS CONSERVATOR.—The Agency may, as
conservator, take such action as may be—
‘‘(i) necessary to put the regulated entity in a sound
and solvent condition; and
‘‘(ii) appropriate to carry on the business of the
regulated entity and preserve and conserve the assets
and property of the regulated entity.

When seeking accountability for the proper enactment of this statute, the Director and other officers are sought out and not a reified Agency.

In a case where the FHFA Director is named as a defendant and the Director or former Director has been found to be guilty of violating the law or carrying out the law in a capricious and arbritrary manner, the questionable decision, act, contract or rule made by a FHFA Director, and thus the FHFA as agency, can be prohibited, changed, rescinded or vacated. If the Director's act was legally egregious (i.e. a felony), the Director can be personally penalized.

If the agency itself is considered to be unlawful and not simply one of the acts of the Director and fellow officers, the agency by an act of Congress can be dismantled and if they so desire replaced with another, differently formulated agency.

Not clearly knowing whether "unlawful conservator" refers to the "FHFA as a Federal Agency" or the "Director of the Federal Agency" does not allow a more direct answer.

So does the question mean a new agency comes into being by an act of Congress to replace the one deemed unlawful a court of law or is a new director appointed to replace an unlawful one that is removed from office for "incapacity, neglect of duty, malfeasance, or other good cause?

Source:
http://www.gpo.gov/fdsys/pkg/PLAW-110publ289/pdf/PLAW-110publ289.pdf