WASHINGTON (AP). The Supreme Court ruled that the structure of the agency, which oversees mortgage giants Fannie Mae and Freddie Mac, violates the separation of powers enshrined in the Constitution.
The judges sent the case involving the Federal Housing Finance Agency back to the lower court for additional proceedings.
This agency is overseen by Fannie Mae and Freddie Mac and was created during the 2008 financial crisis.
Shareholders in the two companies argued that the FHFA’s structure was unconstitutional and that the judges should overturn the agreement that paid the government billions to the companies.
The money is compensation for the taxpayer aid that Fannie Mae and Freddie Mac received after the 2008 financial crisis.
This story is evolving and will be updated.