The federally controlled mortgage giants got a boost from improving homebuilder sentiment – albeit off a low base.
(Reuters) -The U.S. Supreme Court on Monday declined to again hear a multi-billion dollar case pursued by shareholders of Fannie Mae and Freddie Mac arising from the federal government's takeover of the mortgage finance firms during the 2008 financial crisis. The justices turned away an appeal by the investors of a lower court's ruling against their challenge to a 2012 agreement that resulted in hundreds of billions of dollars being redirected from Fannie Mae and Freddie Mac to the U.S. Treasury. The shareholders had argued that this arrangement unlawfully deprived them of dividends without compensation.
Many investors would love to see the Fed cut interest rates next year and create a better risk-on environment.