Replies to post #394259 on Fannie Mae-No Politics (FNMA)

[jog49]

If the FHFA is declared unconstitutional, then conservatorship flies out the window. Isn't that correct?

[GVInvestments]

I agree I think we have a 99% chance of Winning in Texas.

[FreeFNMA]

what is the ETA for that verdict? any idea

[rekcusdo]

"FHFA will be declared unconstitutional in Texas (Collins)"

I have a problem with Collins...

We already know counts 1-3 are dead. That's not even open for debate. What we have left is the constitutional issue of separation of powers.

FHFA is an independent agency, much like the FBI and CIA. If the Collins argument were to hold true, then that means that the director of the FBI and CIA must also answer to the president...a statement we know to be false. The argument also claims that FHFA does not report to Congress, and yet we know this to be untrue since HERA can be repealed by Congress at any time.

In addition, even if it were true that the FHFA needs to report to the President (which I don't believe it is), then the statement that because the NWS was made when FHFA was not reporting to the president automatically makes the NWS void is a flawed statement. The president never made any complaints about the NWS, and therefore the outcome of the NWS would have been the same regardless of whether the FHFA director reported to the President or not. There must be some damages in order to make a claim, and as the Collins argument lays it out, there are none.

I honestly don't believe the Collins argument will be successful.

"It will be reversed en banc"

I hope you are right! Personally, I think that we got exactly what we needed though...a ruling that a breach of contract claim can proceed in court.