UBS will pay nearly $1 billion to settle with Fannie, Freddie regulator

UBS has set aside nearly $1 billion to to settle a lawsuit by Fannie Mae and Freddie Mac’s federal regulator claiming the Swiss bank misrepresented the quality of mortgage-backed securities (MBS) packaged and sold to the mortgage giants during the housing boom.

The Federal Housing Finance Agency is pursuing claims against 18 banks accused of misleading Fannie and Freddie about $200 billion in MBS. Source: reuters.com.