12.10.20
On December 9, 2020, the Supreme Court heard oral arguments in Collins v. Mnuchin, which arose out of litigation initiated by GSE equity arguing that the Third Amendment to the Preferred Stock Purchase Agreements—which govern the terms of the 2008 bailout of the GSEs—should be vacated due to the unconstitutional structure of the FHFA. The substance of the case turns on various channels by which the PSPAs could be invalidated or found unconstitutional, but perhaps the most impactful determination is whether the FHFA Director could be removed at-will by the President. Such a finding would follow an earlier determination in Seila Law that the CFPB Director could be removed at-will, and would have potentially large-scale ramifications under a Biden presidency.