NEW YORK, May 11 (Reuters) - A federal judge on Monday ruled that Nomura Holdings Inc misled Fannie Mae and Freddie Mac by making false statements about the quality of mortgages that backed securities it sold.
U.S. District Judge Denise Cote in Manhattan ruled in favor of the Federal Housing Finance Agency, the conservator for Fannie Mae and Freddie Mac, following a non-jury trial that ended last month.
"The offering documents did not correctly describe the mortgage loans," the judge wrote in a 361-page decision. "The magnitude of falsity, conservatively measured, is enormous."
(Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama)