Fannie Mae, Freddie Mac Case In Iowa District Court Dismissed

US District Court Judge Bratt made a narrow ruling that focuses attention on the Sweeney court, but ultimately doesn’t change the big picture

Investors in Fannie Mae and Freddie Mac suffered another legal setback today when US District Court Judge Robert Pratt dismissed Continental Western Insurance Company’s case against the Federal Housing Finance Agency (FHFA), FHFA director Mel Watt, and the US Treasury asking the courts to end the net worth sweep and force Treasury to pay back the money it’s already received from the income sweep so far.

“This ruling changes nothing. The judge did not rule on any substantive claims brought by investors. This was simply a procedural ruling about the standing of the plaintiffs in Iowa.  There are...