RBS To Pay $99.5 Million To Resolve FHFA Lawsuit

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RBS Securities Inc. will pay $99.5 million to resolve claims brought by the Federal Housing Finance Agency (FHFA) that the bank sold faulty mortgages to Fannie Mae during 2005-2007.

The FHFA has now reached 15 settlements, totaling about $16.1 billion, stemming from 18 lawsuits it filed in 2011 to recoup losses on roughly $200 billion of mortgage-backed securities purchased by Freddie Mac and Fannie Mae, which the agency oversees.

The FHFA was careful to point out in its release that this most recent settlement is not related to its case against RBS filed in federal court in Connecticut, which concerns about $30.4 billion of securities.

The agency also has cases pending in federal court in Manhattan. N.Y., against Goldman Sachs Group Inc., HSBC Holdings PLC and Nomura Holdings Inc., as per a Reuters report.

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