We just found this recent court document. As part of our Fannie Mae, Freddie Mac coverage we are posting the full document below.
Declaration of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) conservator, FHFA head Mel Watts.
Declaration Of Melvin Watt
I, Melvin L. Watt, hereby declare, based on personal knowledge and/or information and belief as follows:
1. I am Director of the Federal Housing Finance Agency (“FHFA” or the “Conservator”) and assumed office on January 6, 2014. Prior to assuming office as Director, 1 served as an elected Member of the United States House of Representatives from January 1993 until January 2014.
2. FHFA is an independent federal agency with regulatory authority over the Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) (together, the ”Enterprises”) and the 12 Federal Home.Loan Banks. Congress created FHF A in July 2008 in response to the housing and economic crisis with the goal of stabilizing the Enterprises and the national housing market. FHFA has served as the Conservator of the Enterprises since September 6, 2008.
3. I have reviewed Plaintiffs’ Requests for Production. I have also reviewed the Declaration of Christopher H. Dickerson that will be contemporaneously filed in this case, and I share the concerns expressed about the potential disclosure of pre-decisional documents plaintiffs seek relating to ongoing and future operations of the conservatorships. The purpose of this declaration is to set forth some of the significant ways in which Plaintiffs’ discovery requests pursuant to the Court’s February 26, 2014 Order would adversely impact the ability of FHFA to exercise its powers and functions as Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC)’s Conservator and adversely impact the financial markets. The disclosure of the information requested will have extraordinarily deleterious consequences on the Conservator’s conduct of the ongoing and future operations of the conservatorships.
4. In my role as Director, I am responsible for making policy decisions on behalf of the Agency. As such, I am frequently involved in confidential internal deliberations regarding a wide range of policy matters relating to the management, supervision, operation and function of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC), These deliberations, which frequently concern how the conservatorships should proceed on a wjde variety of fronts, embody issues at the heart of the Conservator’s congressionally-defined missions.
5. I am aware that Plaintiffs’ claims and allegations in this case challenge the Third Amendment to the Preferred Senior Stock Agreements (“PSP As”) between FHFA. on behalf of the Enterprises, and the U.S. Department of the Treasury. I am also aware of this Court’s February 26, 2014 Discovery Order, and that on April 7, 2014 Plaintiffs served their First Set of Requests for Production.
6. Plaintiffs’ discovery plan — through document requests, interrogatories and deposing Agency officials — seeks to obtain confidential, non-public infonnation concerning a range of critical issues such as potential courses of action regarding the future of the conservatorships that relate directly to the Conservator’s ongoing mission. Specifically, Plaintiffs’ document requests 1 [to the extent it seeks documents relating to ongoing and future operations of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC)], 6, 7, 8, 9 and 10 each seeks information that relates to ongoing or future conservatorship operations. The disclosure of such information, including information relating to or considered in collllection with past conservatorship decisions or relevant to the Conservator’s conduct of the ongoing and future operations of the conservatorshlps, will affect the exercise of powers or functions of the Conservator in a number of ways,
7. The Conservator is charged with directing the largest conservatorships in U.S. history in support of the Nation’s multi-trillion dollar mortgage finance system. The disclosure of any plans relating to on going and future operation of the conservatorships, including the projections of the future profitability of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) (or lack thereof) under a range of economic, business and policy scenarios, can be anticipated to have a destabilizing effect on the Nation’s housing market and economy.
