Another settlement has been reached over the sale of shoddy private-label mortgage-backed securities to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp.
Late Friday, the Federal Housing Finance Agency issued a statement indicating that it had reached a settlement with HSBC North America Holdings Inc. and related parties.
The agreement resolves a lawsuit filed by FHFA in 2011 on behalf of Fannie Mae and Freddie Mac over MBS that HSBC sold to the pair of secondary mortgage lenders.
Violations of federal, Virginia and District of Columbia securities laws are alleged in the complaint.
The lawsuit was one of 18 filed by FHFA, and the HSBC settlement leaves only two of those actions unresolved.
HSBC will pay $550 million as part of the settlement, including $374 billion to Freddie and $176 million to Fannie.
So far, FHFA has collected around $23.7 billion from the settlements.
