FHFA Settles Lawsuit Against General Electric

Posted by Orb Staff on January 24, 2013 No Comments
Categories : Residential Mortgage

13164_fhfa-02595023 FHFA Settles Lawsuit Against General Electric The Federal Housing Finance Agency (FHFA) has reached a deal with General Electric Co. (GE) to settle the agency's lawsuit related to a $549 million transaction involving problematic mortgage-backed securities (MBS) sold by GE to Freddie Mac.Â

Reuters reports that the lawsuit accused GE's subsidiaries, including unit GE Capital, of making inaccurate statements in the offering materials for a pair of MBS sold in 2005 to Freddie Mac. Terms of the agreement were not announced, and the FHFA did not cite the agreement on its website's press release page.

‘This settlement resolves the dispute between FHFA and GE consistent with FHFA's responsibilities as conservator of Freddie Mac,’ Alfred Pollard, the agency's general counsel, said in a statement to Reuters. ‘FHFA is pleased this lawsuit has been resolved and appreciates the work of Freddie Mac in this matter.’

GE declined to publicly comment on the agreement.

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