In 2011, The Federal Housing Finance Agency (FHFA) announced lawsuits against 18 financial institutions for securities violations and/or fraud relating to the sale of Mortgage-Backed Securities to Fannie and Freddie between 2005 and 2007. Today's announcement is simply an update, stating the recovery amount is now "nearly $8 billion," though the agency took the opportunity to refresh our memories of the 2011 announcement.
The 2011 PDF referenced today by FHFA is essentially just a list of the entities involved. They include:
Financial Inc. f/k/a GMAC, LLC
Holdings (USA), Inc.
HSBC North America Holdings, Inc.
JPMorgan Chase &
Merrill Lynch & Co.
/ First Franklin
Holding America Inc.
Bank of Scotland Group PLC
Mortgage News Daily's original coverage goes into greater detail on that announcement, even digging in to some of the more eye-opening "actual vs claimed" statistics on loan features such as LTV. Certain tranches of MBS were represented as having ZERO loans with LTVs over 100 percent whereas the actual review showed it was more than 20 percent of the loans in some cases. Again, this info is all old news, but since FHFA is calling your attention to the superficial list, here's the original deeper dive:
Read More: FHFA Sues 17 Banks, 132 Individuals Over MBS