Replies to post #638474 on Fannie Mae-No Politics (FNMA)

[camaro4me]

FHFA is acting as neither a conservator nor a receiver.

4617(f) Limitation on court action
Except as provided in this section or at the request of the Director, no court may take any action to restrain or affect the exercise of powers or functions of the Agency as a conservator or a receiver.

Executive powers must be controlled by the other 2 branches of the separation of powers, in other words an independent agency cannot forbid the president, and if executive it cannot prevent judicial power, so currently it is illegal and as executive it will be illegal too

1) Legislative Power (the power to pass laws) to Congress
2) Executive Power (the power to administer the laws) to the President
3) Judicial Power (the power to interpret and enforce the laws) to the Courts


Quote:
Your argument that the independence of FHFA means that 4617(f) is invalid is thus completely wrong.

A question: is that section of the GSE Act materially different than HERA's 4617(f)? If so, how?

[kthomp19]

Is Section 1369(b)(4) of the GSE Act of 1992 materially different than HERA's 4617(f)? I will put them side-by-side:

(4) LIMITATION ON JURISDICTION- Except as otherwise provided in this subsection, no court may take any action regarding the removal of a conservator or otherwise restrain or affect the exercise of powers or functions of a conservator.

4617(f) Limitation on court action
Except as provided in this section or at the request of the Director, no court may take any action to restrain or affect the exercise of powers or functions of the Agency as a conservator or a receiver.

I personally don't see any material difference at all. Both of them limit judicial review of acts taken by a conservator.

Executive powers must be controlled by the other 2 branches of the separation of powers, in other words an independent agency cannot forbid the president, and if executive it cannot prevent judicial power, so currently it is illegal and as executive it will be illegal too

This just shows that you completely missed the point.

OHFEO was an executive agency, not an independent agency, and it had a limitation on court action essentially identical to HERA's. The GSE Act absolutely "prevent[ed] judicial power" in Section 1369(a)(4), quoted above.

That means that if the Supreme Court changes HERA to make an executive agency instead of an independent one, 4617(f) will stand.

Your argument that 4617(f) must fall once FHFA stops being an independent agency is thus proven false.