Leopold v. Federal Housing Finance Agency

District Court, District of Columbia·Decided September 11, 2026·No. Civil Action No. 2023-1935·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

JASON LEOPOLD, et al.,

Plaintiffs,

Civil Action No. 23 - 1935 (SLS)

v.

Judge Sparkle L. Sooknanan FEDERAL HOUSING FINANCE AGENCY,

Defendant.

MEMORANDUM OPINION

In March 2023, three banks regulated by the Federal Home Finance Agency (FHFA)

shuttered. In the wake of their collapse, Jason Leopold—a reporter for Bloomberg News— submitted a Freedom of Information Act (FOIA) request to obtain documents about FHFA’s oversight of the banks. When FHFA did not respond, Mr. Leopold and Bloomberg sued. For more than three years, the Parties have worked together to produce and review the requested documents. Now, both sides seek summary judgment with respect to documents that FHFA has withheld in full or in part. For the reasons below, the Court grants in part and denies in part both motions.

BACKGROUND

A. Statutory Background “FOIA ‘implement[s] a general philosophy of full agency disclosure.’” Informed Consent Action Network v. NIH, No. 23-cv-926, 2026 WL 585104, at *1 (D.D.C. Mar. 3, 2026) (alteration in original) (quoting DOJ v. Reps. Comm. for Freedom of the Press, 489 U.S. 749, 754 (1989)). The statute “requires every federal agency, upon request, to make ‘promptly available to any person’ any ‘records’ so long as the request ‘reasonably describes such records.’” Assassination

Archives & Rsch. Ctr. v. CIA, 334 F.3d 55, 57 (D.C. Cir. 2003) (quoting 5 U.S.C. § 552(a)(3)). “Agencies must construe FOIA requests liberally and can only withhold or redact documents if the information requested ‘falls within one of nine statutory exemptions.’” Informed Consent Action Network, 2026 WL 585104, at *1 (quoting People for the Ethical Treatment of Animals (PETA) v. NIH, 745 F.3d 535, 540 (D.C. Cir. 2014)); see 5 U.S.C. § 552(b)(1)–(9). These exemptions demonstrate that the public’s right to information is “not absolute and that disclosure of certain information may harm legitimate governmental or private interests[.]” Martin v. DOJ, 488 F.3d 446, 453 (D.C. Cir. 2007) (cleaned up). The agency bears the burden of establishing that an exemption applies and ordinarily “must disclose all reasonably segregable, nonexempt portions of the requested record(s).” PETA, 745 F.3d at 540 (cleaned up). And the agency must show that it “reasonably foresees that disclosure would harm an interest protected by” one of FOIA’s nine exemptions or that disclosure is otherwise prohibited by law. 5 U.S.C. § 552(a)(8)(A).

B. Factual and Procedural Background The Court draws the facts from the Parties’ Statements of Material Facts and the underlying materials referenced in those statements. See Pls.’ Statement of Undisputed Material Facts (PSOF), ECF No. 37-2; Def.’s Statement of Undisputed Material Facts (DSOF), ECF No. 40-3. The Court assumes the facts in those statements to be true unless they have been specifically disputed, and it assumes the truth of other undisputed statements in the record. See Fed. R. Civ. P. 56(e)(2); see also LCvR 7(h)(1). 1 Mr. Leopold is an investigative reporter at Bloomberg News. Compl. ¶ 2, ECF No. 1.

FHFA is a federal agency that regulates eleven banks in the Federal Home Loan Banks (FHLB)

1 Local Rule 7(h) provides that “the Court may assume that facts identified by the moving party in its statement of material facts are admitted, unless such a fact is controverted in the statement of genuine issues filed in opposition to the motion.” LCvR 7(h)(1).

system, as well as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Office of Finance. See 12 U.S.C. § 4511(b)(2).

In March 2023, three banks in the FHLB system—Silicon Valley Bank, Signature Bank, and Silvergate Bank—collapsed. That same month, Mr. Leopold submitted a FOIA request to FHFA seeking the following records: (1) “FHFA’s internal rating system identifying safety and soundness for each individual FHLB bank” from January 1, 2018, to the date of search; (2) “quarterly supervisory reports” for the same period; and (3) “[e]mails, text messages, memos and letters, referencing [the three banks] . . . includ[ing] any correspondence sent to state officials, such as Governor Gavin Newsom or anyone on his staff.” PSOF ¶ 7; DSOF ¶ 1. FHFA acknowledged receipt of the request on April 3, 2023. PSOF ¶ 8.

In July 2023, Mr. Leopold and Bloomberg sued, alleging that FHFA had violated FOIA by failing to respond to the request. Compl. at 3–4. Over three years have passed since then, during which FHFA conducted a search that uncovered responsive records, produced some records, and withheld others in whole or in part under various FOIA exemptions. PSOF ¶¶ 10–15. The Parties now cross-move for summary judgment. See Pls.’ Mot. Summ. J. (Mot.), ECF No. 37; Def.’s Opp’n & Cross-Mot. Summ. J. (Cross-Mot.), ECF No. 41; Pls.’ Reply & Cross-Opp’n, ECF No. 42; Def.’s Cross-Reply, ECF No. 44; Pls.’ Sur-Reply, ECF No. 47. Those motions are ripe for review.

LEGAL STANDARD

Federal Rule of Civil Procedure 56 requires a court to “grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). In a FOIA suit, an agency is entitled to summary judgment if “no material facts are in dispute” and it establishes that all information subject to a request has either “been produced . . . or is wholly exempt from the Act’s inspection

requirements.” Students Against Genocide v. Dep’t of State, 257 F.3d 828, 833 (D.C. Cir. 2001) (cleaned up). Typically, an “agency demonstrates the applicability of a FOIA exemption by providing affidavits regarding the claimed exemptions.” Shapiro v. DOJ, 893 F.3d 796, 799 (D.C. Cir. 2018). “If an agency’s affidavit describes the justifications for withholding the information with specific detail, demonstrates that the information withheld logically falls within the claimed exemption, and is not contradicted by contrary evidence in the record or by evidence of the agency’s bad faith, then summary judgment is warranted on the basis of the affidavit alone.” ACLU v. DOD, 628 F.3d 612, 619 (D.C. Cir. 2011). “[A]n agency’s justification for invoking a FOIA exemption is sufficient if it appears logical or plausible.” Wolf v. CIA, 473 F.3d 370, 374–75 (D.C. Cir. 2007) (cleaned up).

DISCUSSION

The Plaintiffs challenge FHFA’s reliance on FOIA Exemptions 4, 5, 6, and 8 to withhold 2,221 records in whole or in part. They argue that FHFA has failed to carry its burden at the summary judgment stage to furnish adequate factual support for its withholdings. See Pls.’ Reply & Cross-Opp’n 2–3. And they contend that FHFA did not heed FOIA’s command to “withhold information . . . only if . . . the agency reasonably foresees that disclosure would harm an interest protected by an exemption.” 5 U.S.C. § 552(a)(8)(A)(i)(I). For the most part, the Plaintiffs’ arguments come up short. FHFA has met its burden, except for its Exemption 5 withholdings. 2

2 The Plaintiffs raise two procedural arguments, neither of which changes things. First, they ask the Court to disregard a declaration submitted with FHFA’s opposition, see Wright Decl., ECF No. 40-2, because it was “unsworn and unsigned.” Pls.’ Reply & Cross-Opp’n 2. But FHFA has since submitted a signed copy and explained that it uploaded the unsigned document in error. See Def.’s Cross-Reply 1; Reuploaded Wright Decl. 16, ECF No. 44-1. Second, the Plaintiffs claim that FHFA’s eight-paragraph Statement of Undisputed Facts fails to comply with Local Rule 7(h) because it does not include the requisite facts and record citations. Despite its length, the statement does not violate Local Rule 7(h), particularly when considered alongside FHFA’s Response to the Plaintiffs’ Statement of Undisputed Material Facts, see ECF No. 41-1. See Grimes v. D.C., 794 F.3d 83, 98 (D.C. Cir. 2015) (Griffith, J., concurring) (explaining that “all that the [Local Rules]

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