Town of Babylon v. Federal Housing Finance Agency, 699 F.3d 221

FHFA appointed itself conservator of Fannie Mae and Freddie Mac under 12 U.S.C. § 4617 in 2008 based on unsafe or unsound conditions.
FHFA directed a 2010 Directive to Fannie Mae/Freddie Mac to take prudential actions regarding PACE programs; OCC issued a concurrent supervisory Bulletin addressing PACE.
Fannie Mae/Freddie Mac subsequently announced they would not purchase mortgages secured by first-lien PACE properties; FHFA reaffirmed in 2011 to continue refraining and take protective steps.
Babylon and NRDC sued in EDNY and SDNY alleging APA, NEPA, and HERA violations related to these directives and bulletins, arguing improper rulemaking and environmental impact failures.
District courts held claims against FHFA precluded by 12 U.S.C. § 4617(f) and dismissed for lack of standing against the OCC; the appeals were heard together due to similar issues.
Court affirms dismissal on both conservatorship-privilege and standing grounds, holding § 4617(f) precludes review and that plaintiffs lack redressable standing against the OCC.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether § 4617(f) bars review of FHFA directives as conservator actions	Babylon argues Directive exceeds conservatorship powers and is reviewable	FHFA argues Directive falls within conservator powers and is unreviewable	Yes, precluded; Directive within conservatorship powers and not reviewable
Whether plaintiffs have standing to challenge OCC Bulletin	NRDC/Babylon contend injury from compelled lending practices is redressable	OCC Bulletin affects third parties; plaintiffs cannot demonstrate redressability	No standing; redressability not shown; claims properly dismissed

Volges v. Resolution Trust Corp., 32 F.3d 50 (2d Cir. 1994) (scope of conservator/receiver powers and lack of jurisdiction when action falls within those powers)
Lujan v. Defenders of Wildlife, 504 U.S. 555 (U.S. 1992) (standing requires injury, causation, and redressability; injury must be likely redressable)
Simon v. E. Ky. Welfare Rights Org., 426 U.S. 26 (U.S. 1976) (procedural injury must be linked to redressable action by agency or third party)
Selevan v. N.Y. Thruway Auth., 584 F.3d 82 (2d Cir. 2009) (injury from regulated third party requires likelihood of change by that party)
St. John’s United Church of Christ v. FAA, 520 F.3d 460 (D.C. Cir. 2008) (standing where plaintiff injured by regulated third party must show likelihood of change in third party action)
Whitman v. NYPIRG, 321 F.3d 316 (2d Cir. 2003) (enviro/agency procedural injuries—relevance to redressability when regulated party not sued)
Mahon v. Ticor Title Ins. Co., 683 F.3d 59 (2d Cir. 2012) (standing requirements in case-or-controversy contexts)