UBS Settles with FHFA for $885 Million
UBS Americas will pay $885 million to settle allegations levied by the Federal Housing Finance Agency that the bank misrepresented mortgage-backed securities it sold at the height of the housing bubble, The Wall Street Journal reported July 22.
Under the terms of the settlement, 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 entities 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,” Edward DeMarco, FHFA acting director, told the Journal.
UBS is one of several banks that the FHFA has targeted for allegedly selling faulty mortgage-backed securities. This latest settlement follows one the agency reached with Citigroup in May.
Of the 18 suits that the FHFA filed in 2011, three have been settled.