FHFA hires law firm to recoup MBS losses
The Federal Housing Finance Agency (FHFA) has appointed a law firm to help it recoup billions of dollars on soured mortgage-backed securities purchased from banks and financial firms, The Wall Street Journal reports. The regulator, which issued 64 subpoenas to issuers of mortgage securities, bank servicing companies and other entities, has hired Quinn Emanuel Urquhart & Sullivan to coordinate its investigations. Banks, including JP Morgan Chase, were issued subpoenas by the federal regulator overseeing Fannie Mae and Freddie Mac. The investigation is related to ‘private-label securities’ that were originated by mortgage companies, packaged by firms and then sold to investors.