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UBS, FHFA Settle on RMBS Complaint

*_[UPDATED with the settlement amount and a statement from FHFA.]_*

""UBS"":http://www.ubs.com/global/en.html announced Monday it has reached an agreement in principle with the ""Federal Housing Finance Agency"":http://fhfa.gov/ (FHFA) to settle claims related to soured residential mortgage-backed securities (RMBS) sold to Fannie Mae and Freddie Mac.

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UBS was one of 18 institutions filed against by FHFA--acting as the GSEs' conservator--for securities sold between 2004 and 2007. According to a release from the bank, it has highlighted the case in its litigation note since the third quarter of 2011.

According to release issued days later from FHFA, UBS will pay a total of $885 million: $415 million to Fannie Mae and $470 million to Freddie Mac.

The settlement is subject to documentation and final approval by both parties.

Representatives UBS did not immediately return a request for comment. In a statement for the FHFA, acting director Edward DeMarco said, ""The satisfactory resolution of this matter provides greater clarity and certainty in the
marketplace and is in line with our responsibility for preserving and conserving Fannie Mae's and Freddie Mac's assets on behalf of taxpayers.""

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