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Town of Babylon v. Federal Housing Finance Agency

ELR Citation: 42 ELR 20227
Nos. 11-3408-cv, 11-3285-cv, (2d Cir., 10/24/2012)

The Second Circuit upheld the dismissal of two lawsuits challenging a Federal Housing Finance Agency (FHFA) directive directing Fannie Mae and Freddie Mac to take "prudential actions" to protect themselves against risks raised by Property Assessed Clean Energy (PACE) programs that impose priority- or first-liens on participating properties. An environmental group and a town, in two separate but related lawsuits, claimed the directive discourages participation in, and diminished viability of, the PACE programs. But 12 U.S.C. §4617 precludes judicial review. Directing protective measures against perceived risks is squarely within FHFA's powers as a conservator over Fannie Mae and Freddie Mac.