The FHFA has revealed the size of the settlement it reached with UBS over the sale of mortgage-backed securities.
UBS this week announced it had settled with the FHFA over claims of alleged violations of securities laws in connection with its MBS sales to Fannie Mae and Freddie Mac, but the Swiss banking giant did not divulge the amount of the settlement. The FHFA today revealed that the settlement will see the bank paying out more than $800m.
Under the settlement's terms, UBS will pay approximately $415m to Fannie Mae and $470m to Freddie Mac. The settlement resolves claims related to MBS sales 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.