FHFA, Freddie Mac Settlement Opt-Out Request Properly Denied, Panel Rules

Mealey's (March 16, 2022, 1:45 PM EDT) -- NEW YORK — The Housing and Economic Recovery Act of 2008 (HERA) did not deprive a federal district court of subject matter jurisdiction to treat the Federal Housing Finance Agency (FHFA), as conservator of Freddie Mac, or Freddie Mac as a member of a $165 million settlement class in a lawsuit against certain a company, underwriters of mortgage-backed securities (MBS) and others alleging that the defendants took part in a fraudulent scheme to misrepresent the underwriting standards they used in the offering documents for a series of MBS, a Second Circuit U.S. Court of Appeals panel ruled in affirming on March 14....