Saxton v. Federal Housing Finance Agency, No. 17-1727 (8th Cir. 2018)Annotate this Case
Plaintiffs, three shareholders, filed suit claiming that the federal agency Congress created to serve as conservator of Fannie Mae and Freddie Mac exceeded its powers under the Housing and Economic Recovery Act (HERA) and acted arbitrarily and capriciously by agreeing to a "net worth sweep."
The Eighth Circuit joined four sister circuits that have already rejected materially identical arguments from other shareholders. The court interpreted the anti-injunction provision to apply only to equitable relief, and only where FHFA has acted within its statutory powers. Such a reading was consistent with the presumption of reviewability. The court held that FHFA did not exceed its powers in assenting to the net worth sweep and thus HERA's anti-injunction provision was applicable.