Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Herron v. Mae

United States Court of Appeals, District of Columbia Circuit

June 27, 2017

Caroline Herron, Appellant
v.
Fannie Mae, et al., Appellees

          Argued May 12, 2017

Appeals from the United States District Court for the District of Columbia (No. 1:10-cv-00943)

          Lynne Bernabei argued the cause for appellant. With her on the briefs was Alan R. Kabat.

          Michael A.F. Johnson argued the cause for appellee Federal Housing Finance Agency. With him on the brief were Howard N. Cayne and Dirk Phillips.

          Ira T. Kasdan argued the cause for appellees The Federal National Mortgage Association, et al. With him on the briefs were Bezalel A. Stern and Elizabeth C. Johnson. Damien G. Stewart entered an appearance.

          Before: Brown and Kavanaugh, Circuit Judges, and Sentelle, Senior Circuit Judge.

          OPINION

          Sentelle, Senior Circuit Judge

         Caroline Herron worked as an at-will contractor for the Federal National Mortgage Association, commonly known as Fannie Mae, on mortgage modification programs created by the Department of the Treasury ("Treasury") in response to the financial crisis in 2007 and 2008. According to Herron, Fannie Mae blocked her attempt to become an embedded contractor at Treasury and then terminated her contract work with Fannie Mae in retaliation for her purported disclosures of gross waste and mismanagement by Fannie Mae in administering the programs. Herron sued Fannie Mae and three Fannie Mae officers, asserting claims under District of Columbia law and, in the alternative, under Bivens. The district court dismissed the Bivens claim in a published opinion, holding that Fannie Mae is not a government actor, and, in a subsequent unpublished opinion, granted summary judgment against Herron on her remaining claims. For the reasons stated below, we affirm.

         I.

         Because of the numerous acronyms and terms of art employed in this opinion, we provide a brief glossary.

EESA Emergency Economic Stabilization Act of 2008
FAA Financial Agency Agreement
Fannie Mae Federal National Mortgage Association
Freddie Mac Federal Home Loan Mortgage Corporation
FHFA Federal Housing Finance Agency
HAMP Home Affordable Modification Program
HERA Housing and Economic Recovery Act of 2008
MHAP Making Home Affordable Program

         II.

         Because the district court's opinions offer a detailed description, see Herron v. Fannie Mae, No. 1:10-cv-943, 2016 WL 1177918, at *1-12 (D.D.C. Mar. 8, 2016) ("Summary Judgment Opinion"); Herron v. Fannie Mae, 857 F.Supp.2d 87, 88-91 (D.D.C. 2012) ("Bivens Opinion"), we provide only a brief summary of the facts and allegations in this case.

         A.

         Although it originated as a government-owned entity, Fannie Mae became a privately owned, government-sponsored corporation in 1968. Perry Capital LLC v. Mnuchin, 848 F.3d 1072, 1080 (D.C. Cir. 2017). Fannie Mae and its brother corporation, the Federal Home Loan Mortgage Corporation, also known as Freddie Mac, "buy residential mortgages from banks, repackage them for sale as mortgage-backed securities, and guarantee these securities by promising to make investors whole if borrowers default." Judicial Watch, Inc. v. Fed. Housing Fin. Agency, 646 F.3d 924, 925 (D.C. Cir. 2011). Fannie Mae and Freddie Mac play a central role in the national mortgage market by providing lenders with capital to make more loans. Perry Capital, 848 F.3d at 1080; Judicial Watch, 646 F.3d at 926.

          During the 2000s, Fannie Mae and Freddie Mac "bought risky mortgages and got caught up in the housing bubble." DeKalb Cty. v. Fed. Housing Fin. Agency, 741 F.3d 795, 798 (7th Cir. 2013). The decline in housing prices in the mid-2000s "substantially eroded the value of Fannie [Mae]- and Freddie [Mac]-held mortgages." Judicial Watch, 646 F.3d at 926. The ensuing financial crisis in 2007 and 2008 pushed both firms "to the brink of collapse." Perry Capital, 848 F.3d at 1079. To prevent these government-sponsored enterprises from defaulting, Congress enacted the Housing and Economic Recovery Act of 2008 ("HERA"), Pub. L. No. 110-289, 122 Stat. 2654. Perry Capital, 848 F.3d at 1079, 1080-81.

         HERA established the Intervenor Federal Housing Finance Agency ("FHFA"), an independent federal agency charged with supervising and regulating Fannie Mae. See 12 U.S.C. § 4511; Perry Capital, 848 F.3d at 1080-81. Among other things, HERA authorized the FHFA to place Fannie Mae into conservatorship. See 12 U.S.C. ยง 4617(a). It exercised that authority on September 6, 2008. In conjunction with the appointment of the FHFA as conservator, ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.