But the Court said the plaintiffs could seek remedy on the part of their lawsuit that argues the FHFA's structure was unconstitutional.
At stake is the arrangement under which Fannie Mae and Freddie Mac have transferred their profits to the Treasury Department.
The writedown will require the mortgage giant to seek a $3.7 billion cash infusion from the Treasury, its first draw since 2012.
"This settlement is a stark reminder of what happened to this bank before the financial crisis," the bank's CEO says.
