FHFA Files Motion To Join Fannie Mae Wrongful Termination Case

According to the Blog of Legal Times, a Fannie Mae conservator has asked to join the wrongful termination lawsuit. Attorneys for a former Fannie Mae executive are challenging the Federal Housing Finance Agency’s efforts to join the case, characterizing the motion as a bad faith delaying tactic. The FHFA in its motion wants to help Fannie Mae sort out whether it should be considered a federal actor or private corporation in the wrongful termination case.

U.S. Court Judge Rosemary Collyer has previously told Fannie Mae that it had confused its legal arguments on the issue and set aside the first phase of discovery to resolve the legal status.

Former Fannie Mae executive Caroline Herron has accused officials of firing her for reporting on what she has called questionable practices in Fannie Mae’s handling of Treasury’s Homeownership Preservation Program. Herron sued in U.S. District Court for the District of Columbia and claimed the she was fired in retaliation and Fannie Mae’s refusal to help Herron get a job at the Treasury.

Fannie Mae has denied any wrongdoing and the FHFA’s motion has been contested by Herron’s wrongful termination attorney, saying that the FHFA has waited a year to join the case.