The latest settlement with the Federal Housing Finance Agency brings to more than $10 billion the amount the regulator has collected from parties that allegedly sold faulty securities to the government-sponsored housing enterprises.
FHFA filed 18 lawsuits in 2011 against issuers and underwriters of private-label MBS that were sold to Fannie Mae and Freddie Mac between 2005 and 2007.
The lawsuits alleged that the defendants violated the Securities Act of 1933 by deceiving the secondary lenders about the quality of the MBS and the underwriting performed on the loans.
As of last month, the FHFA had reached settlements in eight of the cases, yielding more than $9 billion in proceeds.
On Friday, FHFA announced that it reached another settlement, this time with Credit Suisse.
The agreement resolves two lawsuits naming Credit Suisse as a defendant.
The settlement will cost Credit Suisse $885 million. Fannie will receive around $234 million, and Freddie’s portion is $651 million.
In all, FHFA has reached nine settlements for $10.137 billion.
