Apr. 20 at 11:49 PM
$FNMA $FMCC AI Report
⚖️ Shareholder Litigation and Appeals
A central focus for investors is the ongoing appeal of the Berkley Insurance v. Federal Housing Finance Agency case.
Case Background: In late 2023, a jury awarded shareholders
$612.4 million (later increased to
$812 million with interest) after finding the FHFA breached a covenant of good faith with the "Net Worth Sweep".
Appeal Status: Both the government and shareholders have appealed this verdict. Recent reports from Inside Mortgage Finance indicated the case was set for appeal proceedings in April 2026.
Broader Legal Context: This follows years of complex litigation, including the landmark SCOTUSblog summary of Collins v. Yellen, where the Supreme Court ruled the FHFA's structure unconstitutional but limited immediate financial relief for shareholders.
Inside Mortgage Finance