Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Instruction # 29: "Although the Housing and Economic Recovery Act (“HERA”) gave the FHFA discretion
to act in the best interests of the GSEs, the FHFA, or the public, that does not mean that the FHFA
could do whatever it wanted. As explained above, the Implied Covenant of Good Faith and Fair
Dealing required the FHFA to refrain from exercising its discretion arbitrarily or unreasonably in
a way that prevented Plaintiffs from receiving the benefits of their bargain under the contracts. To
prevail, Plaintiffs must prove by a preponderance of the evidence that in agreeing to the Net Worth
Sweep, Defendants exercised their discretion under HERA and the contracts arbitrarily or
unreasonably in a way that destroyed or injured Plaintiffs’ rights to receive the benefits of their
contracts with the GSEs."