UBS announces mortgage bond settlement with FHFA

UBS (UBS) said it has reached an agreement in principle with the Federal Housing Finance Agency to settle claims relating to U.S. residential mortgage-backed securities offerings between 2004 and 2007. The case is one of a group of cases related to RMBS offerings filed by the FHFA against 18 financial institutions. The settlement, which is subject to documentation and final approvals by the parties, would encompass pending RMBS-related litigation brought by the FHFA against UBS on behalf of Fannie Mae (FNMA) and Freddie Mac (FMCC) as well as certain unasserted claims. The full cost of the settlement is covered by litigation provisions established by UBS during the Q2 and in prior periods, the bank said.

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