Feds Sue Financial Institutions Over Bad Mortgages

Article Placeholder Image
By Kevin Fayle on September 02, 2011 4:00 PM

The Federal Housing Finance Agency has filed lawsuits against 17 financial institutions alleging violations of federal securities law and common law in the sale of mortgage-backed securities to Fannie Mae and Freddie Mac.  The FHFA claims that the marketing and sales descriptions provided by the financial institutions misrepresented the nature and risk of the securities in question. Feds Sue Financial Institutions Over Bad Mortgages