Big bank to pay $885 million in mortgage suit

by MPA24 Mar 2014
A major lender will has agreed to pay $885 million to settle government claims related to mortgage-backed securities.

Credit Suisse reached the agreement with the Federal Housing Finance Agency, which had sued the lender for allegedly misleading Fannie Mae and Freddie Mac about the quality of mortgage-backed securities sold between 2005 and 2007. The settlement resolved all claims in the lawsuit, as well as claims against Credit Suisse in a separate lawsuit filed primarily against Ally Financial, according to an FHA statement.

Under the terms of the settlement, Credit Suisse will pay about $234 million to Fannie Mae and about $651 million to Freddie Mac, the FHFA stated.

The FHFA filed lawsuits against 18 banks in 2011 alleging problems with their sales of mortgage-backed securities. The Credit Suisse agreement is the ninth settlement announced in relation to those suits, according to the FHFA. Lenders that have yet to settle with the agency include Bank of America and Goldman Sachs, according to a MarketWatch report.  
 

COMMENTS

  • by Stan J | 3/25/2014 11:56:08 AM

    Hundreds of millions go to the politicians and bureaucracy but none for the victimized consumer.

  • by GT | 3/25/2014 2:15:31 PM

    Will the CFPB ever deal with marketing agreements and joint ventures between realtors and lenders that threaten the stability and integrity of our business. Paying realtors for referrals using these methods cannot be good for the buyers or sellers.

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