Newsroom
FHFA Director Calabria removed following SCOTUS decision
UPDATE: The White House appointed Sandra Thompson as the Acting Director of the FHFA.
Following the U.S. Supreme Court's decision to uphold part of a lower court ruling that the Federal Housing Finance Agency's (FHFA) structure is unconstitutional under the separation of powers doctrine because the agency's lone director is insufficiently accountable to the president, the White House removed FHFA Director Mark Calabria from his position. Calabria was appointed to the position in 2019 by President Donald Trump.
A White House official explained President Joe Biden is "moving forward today to replace the current director with an appointee who reflects the administration's values," reported Politico.
The Court's decision overturned the current FHFA structure that allowed the director to be removed before the end of their five-year term only 'for cause.'
"The Supreme Court's decision to rule the FHFA's structure unconstitutional leaves many unanswered questions for the housing market amid the COVID-19 economic recovery and remaining uncertainties," said NAFCU President and CEO Dan Berger. "During this period of uncertainty, NAFCU will continue to advocate for policymakers to ensure credit unions retain uninterrupted access to the secondary mortgage market as well as for the GSE Patch to be extended over the long-term."
This decision mirrors the Court's decision in the lawsuit brought by Seila Law challenging the CFPB's single-director structure, determining that it is unconstitutional; the Court agreed to hear the FHFA case shortly after the CFPB decision was issued.
The Court held that, even though they found the FHFA was unconstitutionally structured, the Court's decision does not invalidate the amendments made to the Preferred Stock Purchase Agreements by the FHFA and Treasury Department.
In addition, the Court stated that the FHFA acted within its authority to make those changes, thereby dismissing the shareholders’ claims that the net worth sweep of Fannie Mae and Freddie Mac’s profits violates the statute.
As a result, the Court unanimously dismissed shareholders' claims regarding the constitutionality of the net worth sweep and sent the case back to lower courts. The Court explicitly stated that the shareholders could not seek to void the 20212 agreement altogether.
NAFCU expects Biden's appointee will be more likely to focus on expanding affordable housing initiatives, reviewing racial disparities in the housing market, and keeping Fannie Mae and Freddie Mac – the government sponsored enterprises (GSEs) - in conservatorship, whereas Calabria was working toward recapitalizing and releasing the GSEs from government control.
Share This
Related Resources
The Bottom Line on Insurance Tracking and Collateral Protection
Strategy
preferred partner
Allied Solutions
Blog Post
Resiliency In Your Incident Response Plan
Cybersecurity
preferred partner
DefenseStorm
Blog Post
Add to Calendar 2024-04-15 09:00:00 2024-04-15 09:00:00 Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs Listen On: Key Takeaways: [03:50] With the merger of a smaller credit union into a larger one you are really only dealing with integrating staff into the larger credit union. [05:53] When working with a merger of equals we start with a deep dive into the executive compensation and benefits of each organization. [09:09] If your current executive benefits provider doesn’t conduct regular plan evaluations, consider having a plan audit anyway. [13:46] Don’t overpay for these things if you don’t have to. When you have more options available that means the cost is more appropriate. [17:11] It is in a unified organization’s best interest to do tier timelines where we look at your top executives who are critical to the unified organization’s success today and then slowly add in the next levels. Web NAFCU digital@nafcu.org America/New_York public
Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs
preferred partner
Gallagher
Podcast
Add to Calendar 2024-04-11 14:00:00 2024-04-11 14:00:00 Regulation E: Impacts Across Your Institution Dive into regulatory excellence with, Regulation E: Impacts Across Your Institution. This webinar is tailored to empower you with the knowledge and strategies necessary to effectively implement the Electronic Funds Transfer Act (EFTA) and Regulation E within your operations. You’ll explore how to apply Regulation E across various business areas to ensure compliance obligations are met with precision. Key Takeaways Learn the basics of EFTA and Regulation E Understand how to apply Regulation E at your organization to detect processes and transactions that require Regulation E compliance Discover how Regulation E may apply to a large breath of areas in your institutions and functions for which you may rely on third-party vendors Review recent enforcement activity for non-compliance with EFTA and Regulation E Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 11, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Regulation E: Impacts Across Your Institution
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.