FHFA settles with Barclays for $280M
April 28, 2014 – The Federal Housing Finance Agency settled with Barclays Bank PLC and related companies and individuals for $280 million last week, resolving a lawsuit over private-label mortgage-backed securities purchased by Fannie Mae and Freddie Mac in the run-up to the financial crisis.
FHFA, the conservator of Fannie and Freddie, filed claims against Barclays and Ally Financial Inc. that accused the groups of federal and state securities law violations. The settlement resolves the claims in both lawsuits, which were filed in the U.S. District Court for the Southern District of New York.
The settlement is the 13th to come out of the 18 private-label securities lawsuits filed by the agency in 2011. As part of the settlement, Barclays will pay Freddie $227 million and Fannie $53 million.
Recently, senior NAFCU staff accompanied association President and CEO Dan Berger during a meeting with FHFA Director Mel Watt on housing finance reform and the role of credit unions in the secondary mortgage market.
During the meeting at FHFA headquarters, NAFCU representatives reiterated to Watt the need for small institutions such as credit unions to have equal, competitive access to the secondary mortgage market in any future housing finance system.
"NAFCU, FHFA talk CUs' role in housing finance," 4/16/14