Replies to post #734094 on Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

"“Defendants cannot
simply say that since HERA permits the conservator to act in its own best interests, the FHFA can
do whatever it wants and Plaintiffs could not expect otherwise. The question is whether Defendants
exercised their discretion arbitrarily or unreasonably in a way that frustrated Plaintiffs’
expectations under the contract.” Fairholme Funds, 2018 WL 4680197, at *13.

Because HERA only authorizes the discretion through which FHFA agreed to the Third
Amendment, rather than the Third Amendment itself, the prohibition of implied covenant claims based on contractually authorized conduct does not bar plaintiffs’ claims and does not entitle
defendants to summary judgment."