Tag Archives: GSE Profits

Don Layton, the current Senior Industry Fellow at the Joint Center for Housing Studies at Harvard University—and former CEO of Freddie Mac—released a new column on the policymaking implications of record-high mortgage origination profits during the pandemic he authored after the ...

This week the United States Supreme Court rejected appeals in a case challenging the federal government’s handling of profits generated by Fannie Mae and Freddie Mac since they came under government control during the 2008 financial crisis. On Tuesday, the ...

Why did a panel deny the FHFA's request to transfer four cases involving the GSE Profit Sweep to a district court in Washington, D.C.?

The government claimed in 2012 that the GSEs were financially weak. Newly unsealed depositions may contradict this, however.

In this installment of Counsel's Corner, Brett Barnett of McGuireWoods discusses last week's decision by the 9th Circuit Court that Fannie Mae and Freddie Mac are privately held companies.

The Ninth Circuit Court of Appeals affirmed a decision by a lower court that Fannie Mae and Freddie Mac are "private companies." What will the ruling mean, if anything, for the pending lawsuits by GSE investors who claim the Net Worth Sweep is illegal?

Fairholme Funds, one of the GSEs' largest investors, is requesting that the government turn over documents that Fairholme says are being unlawfully withheld in regards to the sweep of GSE profits into Treasury.

One of the largest GSE investors, Fairholme Funds sued the government in 2013 over the sweeping of GSE profits into Treasury. The lawsuit is still pending.

Robinson contends that despite posting record losses for 2007 and the first half of 2008, shortly before the government seized control of them, Fannie Mae and Freddie Mac were always capable of paying their debts and were never in danger of insolvency. The complaint contends that Fannie Mae and Freddie Mac took a relatively conservative approach to investing in mortgages during the years 2004 to 2007, the so-called “housing bubble,” during which many institutions were not conservative where the mortgage market was concerned.

Fairholme Funds made the request in court against the GSEs, claiming that their investor ownership stake was taken unlawfully from them by the government when the conservatorship occurred. Fairholme's efforts are a step toward getting their ownership stake returned to them.