Supreme Court to debate FHFA single-director structure

July 10, 2020

The U.S. Supreme Court on Thursday announced it will hear two appeals in cases related to the Federal Housing Finance Agency (FHFA). The cases will be consolidated into one case, Collins et al. v. Mnuchin et al. and Mnuchin et al. v. Collins et al.

The first appeal challenges a 2012 agreement between the FHFA and the U.S. Treasury. The agreement allowed the government to collect billions of dollars from Fannie Mae and Freddie Mac profits.

In the second appeal, the court will review questions around the single-director structure of the FHFA and its regulation of the two mortgage giants.

Credit unions often meet mortgage needs that banks are unwilling or unable to address in rural and working-class communities and rely on Fannie Mae and Freddie Mack to provide necessary liquidity to continue doing so.

This comes after the Supreme Court recently ruled that the Consumer Financial Protection Bureau (CFPB) single director serves at the pleasure of the president, leaving in place a leadership structure that places consumer protection behind the political ideology of the ruling party.