Home >> Daily Dose >> RBS, FHFA Reach $99.5M Settlement in Securities Case
Print This Post Print This Post

RBS, FHFA Reach $99.5M Settlement in Securities Case

numberone-moneyThe Federal Housing Finance Agency (FHFA), functioning as the conservator for Freddie Mac, announced a settlement with RBS Securities, Inc. RBS will pay $99.5 million, resolving claims against RBS in FHFA v. Ally Financial Inc.

The settlement resolves alleged violations of federal and state securities law in connection with private-label mortgage-backed securities (PLS) purchased by Freddie Mac during 2005 to 2007.

FHFA noted that a separate lawsuit involving RBS, FHFA v. The Royal Bank of Scotland Group, is not affected by this settlement.

The settlement noted, "This agreement does not constitute an admission by RBSSI of any liability or wrongdoing whatsoever, including, but not limited to, any liability or wrongdoing with respect to any of the allegations that were or could have been raised in the Ally Action."

Furthermore, the settlement's language said, "To the contrary, RBSSI vigorously denies the allegations in the Ally action. This Agreement also does not constitute an admission by FHFA or Freddie Mac that they would not have been able to successfully prosecute their claims, and in fact FHFA and Freddie Mac firmly believe in the merit of each of their allegations in the Ally Action."

This is the 15th settlement related to 18 PLS lawsuits filed by FHFA in 2011.

About Author: Colin Robins

Colin Robins is the online editor for DSNews.com. He holds a Bachelor of Arts from Texas A&M University and a Master of Arts from the University of Texas, Dallas. Additionally, he contributes to the MReport, DS News' sister site.

Check Also

New White Paper Advocates for Appraisal Modernization

In response to a recent FHFA RFI, the white paper advocates for more hybrid appraisals. Click through to learn what it discusses.

Subscribe to MDaily

MReport is here for you to stay on top of important developments in the mortgage marketplace. To begin receiving each day’s top news, market information, and breaking news updates, absolutely free of cost, simply enter your email address below.