Legal and Political Update: Federal Home Loan Mortgage Corp (FMCC), Federal National Mortgage Assctn Fnni Me (FNMA)

Legal and Political Update: Federal Home Loan Mortgage Corp (OTCBB:FMCC), Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA)

There were updates of interest for Federal Home Loan Mortgage Corp (OTCBB:FMCC) and Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) investors today. The first was an update in Fairholme Funds, Inc Et Al v The United States in the US Federal Court of Claims. The second update came as US Senators Mark Warner & Elizabeth Warren wrote a letter to the Federal Housing Finance Agency Director Melvin L. Watt regarding Housing, Fannie Mae and Freddie Mac.

Fairholme Funds, Inc Et Al v The United States

The update in the case presided over by Judge Sweeney in the US Federal Court of Claims was a brief one. On October 28th, the government filed a motion to stay proceedings pending appeal of Judge Lamberth’s Federal District Court decision in Perry Capital, LLC v Lew Et AL. The short filing states that the Plaintiff’s response to the motion to stay was sealed and cites 7 exhibits, setting off speculation as to what it may contain. Presumably the Plaintiff’s response to the government contained evidence found during discovery detailing why Judge Lamberth’s decision was irrelevant.

**SEALED**RESPONSE to [103] Motion to Stay, filed by All Plaintiffs. (Attachments: # (1) Exhibit A, # (2) Exhibit B, # (3) Exhibit C, # (4) Exhibit D, # (5) Exhibit E, # (6) Exhibit F, # (7) Exhibit G)(Cooper, Charles)

Letter from Senators to FHFA Director Mel Watt

The 2 page letter dated November 18th from Senators Warner & Warren open with the observation that the government conservatorship of Fannie Mae and Freddie Mac is not a long-term solution and that Congress should enact comprehensive housing finance reform. Senator Warner & Warren highlight 6 points for building housing finance infrastructure for the future, enhancing the role of private capital and responsibly increasing access to mortgage credit.

We’ve included the full document below.

FHFA_Warner_Warren_letter