UBS Americas Reaches $885 Million MBS Settlement With FHFA – NMP Skip to main content

UBS Americas Reaches $885 Million MBS Settlement With FHFA

Jul 26, 2013

The Federal Housing Finance Agency (FHFA), as conservator of Fannie Mae and Freddie Mac announced it has reached a settlement with UBS Americas Inc. for $885 million. The settlement covers claims of alleged violations of federal and state securities laws in connection with private-label residential mortgage-backed securities (MBS) purchased by Fannie Mae and Freddie Mac. Under the terms of the agreement, UBS will pay approximately $415 million to Fannie Mae and $470 million to Freddie Mac to resolve certain claims related to securities sold to the companies between 2004 and 2007. “The satisfactory resolution of this matter provides greater clarity and certainty in the marketplace and is in line with our responsibility for preserving and conserving Fannie Mae’s and Freddie Mac’s assets on behalf of taxpayers,” said FHFA Acting Director Edward J. DeMarco. The settlement agreement covers claims between FHFA and UBS in the following cases: FHFA v. UBS Americas, Inc., et al., 11 Civ. 5201 (DLC) (S.D.N.Y.); FHFA v. Ally Financial Inc., et al., 11 Civ. 7010 (DLC) (S.D.N.Y.); FHFA v. Countrywide Financial Corp., et al., No. 12 Civ. 1059 (MRP) (C.D. Cal.); FHFA v. First Horizon National Corp., et al., No. 11 Civ. 6193 (DLC) (S.D.N.Y.). The settlement is between FHFA and UBS Americas, Inc., UBS Real Estate Securities Inc., UBS Securities LLC, Mortgage Asset Securitization Transactions Inc., and other named defendants. FHFA has now settled three of the 18 suits it filed in 2011, and remains committed to satisfactorily resolving the remaining suits as well.
About the author
Published
Jul 26, 2013
Insuring The Risk To Lenders At Closing

Traditional protections like title insurance and closing protection letters may leave lenders exposed to significant settlement, funding, and fraud-related losses

CHLA Uses Trump Mortgage Order To Renew Push For LO Comp Reform

Community lenders want more flexibility over employee compensation, closing-cost estimates, down payment assistance, and federal supervision of smaller IMBs

Servicers Begin Testing Systems Ahead of VA Partial Claim Deadline

VA lenders and servicers have until Nov. 28 to implement the new loss mitigation waterfall and Partial Claim Program

ROAD Act’s Housing Incentive May Be Too Small To Move Supply

Realtor.com finds the median city risks losing only about $84,000, although the policy could carry more weight in supply-starved Northeast and Midwest markets

CRA Proposal Could Reshape Bank Lending And Affordable Housing Investment

The OCC and FDIC would put more weight on lending while easing community development requirements for hundreds of banks

Fannie Mae AI Governance Deadline Arrives Aug. 6

Seller/servicers using artificial intelligence in origination or servicing must have formal policies, oversight, and vendor controls in place