FHFA Announces $1.2 5 B illion Settlement W ith Morgan Stanley

FHFA Announces $1.2 5 B illion Settlement W ith Morgan Stanley

WASHINGTON, D.C. – February 10, 2014 – (RealEstateRama) — The Federal Housing Finance Agency (FHFA), as conservator of Fannie Mae and Freddie Mac, today announced it has reached a settlement with Morgan Stanley, related companies and specifically named individuals for $1.25 billion. The settlement resolves claims in the lawsuit FHFA v. Morgan Stanley, et al. in the U.S. District Court of the Southern District of New York. The settlement addresses claims alleging violations of federal and state securities laws and common law fraud in connection with private-label mortgage-backed securities (PLS) purchased by Fannie Mae and Freddie Mac between 2005 and 2007.

Under the terms of the agreement, Morgan Stanley will pay $625 million each to Fannie Mae and Freddie Mac. As part of the agreement, FHFA, Fannie Mae and Freddie Mac will release certain claims against Morgan Stanley related to the securities involved. This is the seventh settlement related to the 18 PLS lawsuits FHFA filed in 2011. FHFA remains committed to satisfactory resolution of the remaining actions.

Link to Settlement Agreement

###

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.5 trillion in funding for the U.S. mortgage markets and financial institutions.

Contact:
Stefanie Johnson
(202) 649-3030

Corinne Russell
(202) 649-3032

SHARE
FHFA

The Federal Housing Finance Agency (FHFA) was created on July 30, 2008, when the President signed into law the Housing and Economic Recovery Act of 2008.  The Act created a world-class, empowered regulator with all of the authorities necessary to oversee vital components of our country’s secondary mortgage markets – Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.  In addition, this law combined the staffs of the Office of Federal Housing Enterprise Oversight (OFHEO), the Federal Housing Finance Board (FHFB), and the GSE mission office at the Department of Housing and Urban Development (HUD).

Contact:

1700 G Street, NW
4th Floor
Washington, DC 20552
Phone: (866) 796-5595

Corinne Russell
(202) 414-6921
Stefanie Mullin
(202) 414-6376

Previous articleNAHB Names the Nationals Gold Award Winners
Next articleOBAMA ADMINISTRATION RELEASES JANUARY HOUSING SCORECARD