Supreme Court: Mortgage overseer structure unconstitutional
WASHINGTON (AP) — The Supreme Court has ruled that the structure of the agency that oversees mortgage giants Fannie Mae and Freddie Mac violates separation of powers principles in the Constitution.
The justices have sent the case involving Federal Housing Finance Agency back to a lower court for additional proceedings. That agency oversees Fannie Mae and Freddie Mac and was created during the 2008 financial crisis.
Shareholders of the two companies had argued that the FHFA’s structure was unconstitutional and that the justices should set aside an agreement under which the companies have paid the government billions. That money is compensation for the taxpayer bailout that Fannie Mae and Freddie Mac received following the 2008 financial crisis.