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by CareyBot

In a move that some analysts fear could lead to further tightening in residential mortgage lending, Fannie Mae and Freddie Mac's regulator has sued 17 banks to recover billions in losses on "private label" mortgage-backed securities the mortgage giant purchased during the housing boom.Fannie and Freddie bought the securities -- pools of subprime and "alt-A" loans considered too risky or large to qualify for their own guarantee programs -- as investments before the companies were placed under government conservatorship in 2008.The Federal Housing Finance Agency, which as conservator of Fannie and Freddie is charged with minimizing their losses, announced Friday it was suing 17 financial institutions, claiming some of the losses the mortgage giants have racked up on priva...