November 14, 2018 / 3:08 PM / a month ago

U.S. court rejects challenge over Fannie Mae, Freddie Mac profits

FILE PHOTO: Fannie Mae headquarters is seen in Washington, DC, U.S. on February 21, 2014. REUTERS/Kevin Lamarque/File Photo

WASHINGTON (Reuters) - A U.S. federal court on Wednesday rejected a challenge to Treasury Department requirements that government-sponsored mortgage-finance giants Fannie Mae and Freddie Mac return net profits to the federal government.

“The challengers are in an unfortunate spot. They invested in Fannie and Freddie, expecting regular dividend payments in return,” the U.S. Court of Appeals for the Third Circuit opinion said. But granting them any “relief would effectively unwind” and undermine the Federal Housing Finance Agency’s authority.

Writing by Susan Heavey; Editing by Doina Chiacu

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