Only “Number Jesters” report 2Q economic growth at 4% pace

4 factors weighing down housing in the second half of 2014

Will housing collapse?

Altos: Critics wrong about housing, it’s going to soar

2015 will see notable price appreciation
W S
Investments

FHFA, RBS reach nearly $99.5 million MBS settlement

Latest in a string of FHFA lawsuits

Freddie Mac
/ Print / Reprints /
| Share More
/ Text Size+

[UPDATE 1: clarifies settlement is for $99.5 million not nearly $1 billion]

Continuing its strings of lawsuits, the Federal Housing Finance Agency, as a conservator of Freddie Mac, announced its latest settlement for $99.5 million with RBS Securities (RBS).

This time the settlement addresses the claims against RBS in FHFA vs. Ally Financial (ALLY) in the Southern District of New York, alleging violations of federal and state securities laws in connection with private-label mortgage backed securities purchased by Freddie from 2005-2007.

In March, Fannie Mae, Freddie and the FHFA settled a MBS lawsuit with Bank of America (BAC), making the bank pay an aggregate payment of $9 billion.  

Then in April, the FHFA also reached a $280 million RMBS deal with Barclays Bank PLC (BARC). Per the terms of the settlement agreement, Barclays will pay $227 million to Freddie and $53 million to Freddie.

Meanwhile, back in May, the Royal Bank of Scotland said it will cut its mortgage trading business by as much as two-thirds over the next 18 months, as part of an effort to reduce its assets ahead of new rules set out by the U.S. Federal Reserve.

Recent Articles by Brena Swanson

Comments powered by Disqus