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Supreme Court Rules FHFA Structure Unconstitutional, Paves Way for Removal of Calabria

Wednesday, June 23, 2021 - 9:00AM

The U.S. Supreme Court released a decision today ruling that the structure of the Federal Housing Finance Agency (FHFA) is unconstitutional and allowing the president to fire the director. The decision in Collins v. Yellen paves the way for President Joe Biden to replace FHFA Director Mark Calabria if he chooses. Calabria is an appointee of President Donald Trump. The court ruled that the Recovery Act, which placed FHFA enterprises Fannie Mae and Freddie Mac under government conservatorship, violated the Constitutional separation of powers dictate by restricting the president’s ability to remove the FHFA head. Biden is expected to remove Calabria and appoint a FHFA leader who prioritizes affordable housing and would be more likely to raise the $500 million annual cap on Fannie and Freddie low-income housing tax credit (LIHTC) equity investments.

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