By Nelson D. Schwartz/New York Times
The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation.
kAm%96 u656C2= w@FD:?8 u:?2?46 p86?4J DF:ED[ H9:49 2C6 6IA64E65 E@ 36 7:=65 :? E96 4@>:?8 52JD :? 7656C2= 4@FCE[ 2C6 2:>65 2E q2?< @7 p>6C:42[ y!|@C82? r92D6[ v@=5>2? $249D 2?5 s6FED496 q2?<[ 2>@?8 @E96CD[ 244@C5:?8 E@ E9C66 :?5:G:5F2=D 3C:6765 @? E96 >2EE6C]k^Am
kAm%96 DF:ED DE6> 7C@> DF3A@6?2D E96 7:?2?46 286?4J :DDF65 E@ 32?<D 2 J62C 28@] x7 E96 42D6 :D ?@E 7:=65 uC:52J[ E96J D2:5[ :E H:== 4@>6 %F6D52J[ D9@CE=J 367@C6 2 5625=:?6 6IA:C6D 7@C E96 9@FD:?8 286?4J E@ 7:=6 4=2:>D]k^Am
kAm%96 DF:ED H:== 2C8F6 E96 32?<D[ H9:49 2DD6>3=65 E96 >@CE8286D 2?5 >2C<6E65 E96> 2D D64FC:E:6D E@ :?G6DE@CD[ 72:=65 E@ A6C7@C> E96 5F6 5:=:86?46 C6BF:C65 F?56C D64FC:E:6D =2H 2?5 >:DD65 6G:56?46 E92E 3@CC@H6CD’ :?4@>6D H6C6 :?7=2E65 @C 72=D:7:65] (96? >2?J 3@CC@H6CD H6C6 F?23=6 E@ A2J E96:C >@CE8286D[ E96 D64FC:E:6D 324<65 3J E96 >@CE8286D BF:4<=J =@DE G2=F6]k^Am
kAmu2??:6 2?5 uC655:6 =@DE >@C6 E92? Sb_ 3:==:@?[ :? A2CE 2D 2 C6DF=E @7 E96 562=D[ =@DD6D E92E H6C6 3@C?6 >@DE=J 3J E2IA2J6CD]k^Am
kAmx? yF=J[ E96 286?4J 7:=65 DF:E 282:?DE &q$[ 2?@E96C >2;@C >@CE8286 D64FC:E:K6C[ D66<:?8 E@ C64@G6C 2E =62DE Sh__ >:==:@?[ 2?5 E96 :?5:G:5F2=D H:E9 <?@H=6586 @7 E96 42D6 D2:5 E96 ?6H =:E:82E:@? H@F=5 36 D:>:=2C :? D4@A6]k^Am
kAm!C:G2E6 9@=56CD @7 >@CE8286 D64FC:E:6D 2C6 2=C625J ECJ:?8 E@ 7@C46 E96 3:8 32?<D E@ 3FJ 324< E6?D @7 3:==:@?D :? D@FC65 >@CE8286\324<65 3@?5D[ 3FE E9:D 7656C2= 677@CE :D 2 ?6H 492AE6C :? 2 9F86 =682= 7:89E E92E 92D 2=2C>65 :?G6DE@CD :? 32?< D92C6D] x? E9:D 42D6[ C2E96C E92? 56>2?5:?8 E92E E96 32?<D 3FJ 324< E96 @C:8:?2= =@2?D[ E96 7:?2?46 286?4J :D D66<:?8 C6:>3FCD6>6?E 7@C =@DD6D @? E96 D64FC:E:6D 96=5 3J u2??:6 2?5 uC655:6]k^Am
kAm%96 :>A6?5:?8 =:E:82E:@? F?56CD4@C6D 9@H 2=>@DE 6I24E=J E9C66 J62CD 27E6C E96 4@==2AD6 @7 {69>2? qC@E96CD 2?5 E96 368:??:?8 @7 2 7:?2?4:2= 4C:D:D 42FD65 :? =2C86 A2CE 3J DF3AC:>6 =6?5:?8[ E96 =682= 72==@FE :D >@F?E:?8]k^Am
kAmq6D:56D E96 2?8CJ :?G6DE@CD[ d_ DE2E6 2EE@C?6JD 86?6C2= 2C6 :? E96 7:?2= DE286D @7 ?68@E:2E:?8 2 D6EE=6>6?E E@ 255C6DD 23FD6D 3J E96 =2C86DE >@CE8286 D6CG:46CD[ :?4=F5:?8 q2?< @7 p>6C:42[ y!|@C82? 2?5 r:E:8C@FA] %96 2EE@C?6JD 86?6C2=[ 2D H6== 2D 7656C2= @77:4:2=D[ 2C6 AC6DD:?8 E96 32?<D E@ A2J 2E =62DE Sa_ 3:==:@? :? E92E 42D6[ H:E9 >F49 @7 E96 >@?6J 62C>2C<65 E@ C65F46 >@CE8286D @7 9@>6@H?6CD 724:?8 7@C64=@DFC6]k^Am
kAmp?5 =2DE >@?E9[ E96 :?DFC2?46 8:2?E p>6C:42? x?E6C?2E:@?2= vC@FA 7:=65 2 S`_ 3:==:@? DF:E 282:?DE q2?< @7 p>6C:42[ 244FD:?8 E96 32?< 2?5 :ED r@F?ECJH:56 u:?2?4:2= 2?5 |6CC:== {J?49 F?:ED @7 >:DC6AC6D6?E:?8 E96 BF2=:EJ @7 >@CE8286D E92E 324<65 E96 D64FC:E:6D p]x]v] 3@F89E]k^Am
kAmq2?< @7 p>6C:42[ v@=5>2? $249D 2?5 y!|@C82? 2== 564=:?65 E@ 4@>>6?E] uC2?< z6==J[ 2 DA@<6D>2? 7@C s6FED496 q2?<[ D2:5[ “(6 42?’E 4@>>6?E @? 2 DF:E E92E H6 92G6?’E D66? 2?5 92D?’E 366? 7:=65 J6E]”k^Am
kAmqFE AC:G2E6=J[ 7:?2?4:2= D6CG:46 :?5FDECJ 6I64FE:G6D 2C8F6 E92E E96 =@DD6D @? E96 >@CE8286\324<65 D64FC:E:6D H6C6 42FD65 3J 2 3C@256C 5@H?EFC? :? E96 64@?@>J 2?5 E96 9@FD:?8 >2C<6E[ ?@E 3J 9@H E96 >@CE8286D H6C6 @C:8:?2E65 @C A24<2865 :?E@ D64FC:E:6D] x? 255:E:@?[ E96J 4@?E6?5 E92E :?G6DE@CD =:<6 p]x]v] 2D H6== 2D u2??:6 2?5 uC655:6 H6C6 D@A9:DE:42E65 2?5 <?6H E96 D64FC:E:6D H6C6 ?@E H:E9@FE C:D<]k^Am
kAmx?G6DE@CD 762C E92E :7 32?<D 2C6 7@C465 E@ A2J @FE 3:==:@?D @7 5@==2CD 7@C >@CE8286D E92E =2E6C 5672F=E65[ :E 4@F=5 D2A 62C?:?8D 7@C J62CD 2?5 4@?EC:3FE6 E@ 7FCE96C =@DD6D 24C@DD E96 7:?2?4:2= D6CG:46D :?5FDECJ[ H9:49 92D @?=J C646?E=J C682:?65 :ED 7@@E:?8]k^Am
kAmq2?< @77:4:2=D 2=D@ 4@F?E6C E92E 7FCE96C =682= 2EE24<D @? E96> H:== @?=J 56=2J E96 C64@G6CJ :? E96 9@FD:?8 >2C<6E[ H9:49 C6>2:?D >@C:3F?5[ 9FCE:?8 E96 3C@256C 64@?@>J] ~E96C 6IA6CED H2C?65 E92E 2 D6C:6D @7 25G6CD6 D6EE=6>6?ED 4@DE:?8 E96 32?<D 3:==:@?D C2:D6D @E96C C:D<D[ 6G6? :7 DF:ED 92G6 =682= >6C:E]k^Am
kAm%96 9@FD:?8 7:?2?46 286?4J H2D 4C62E65 :? a__g 2?5 2DD:8?65 E@ @G6CD66 E96 96>@CC928:?8 8@G6C?>6?E\324<65 >@CE8286 4@>A2?:6D[ 2 AC@46DD <?@H? 2D 4@?D6CG2E@CD9:A]k^Am
kAm“(9:=6 x 36=:6G6 E92E u]w]u]p] :D 24E:?8 C6DA@?D:3=J :? :ED C@=6 2D 4@?D6CG2E@C[ x 2> 27C2:5 E92E H6 C:D< AFD9:?8 E96D6 8FJD @77 @7 2 4=:77 2?5 H6’C6 8@:?8 E@ 92G6 E@ 32:= @FE E96 32?<D 282:?[” D2:5 %:> #@@5[ H9@ H@C<65 2E u2??:6 |26 F?E:= a__e 2?5 :D ?@H 2 A2CE?6C 2E E96 r@==:?8H@@5 vC@FA[ H9:49 25G:D6D 32?<D 2?5 D6CG:46CD @? 9@FD:?8\C6=2E65 :DDF6D]k^Am
kAm%96 DF:ED 2C6 36:?8 7:=65 ?@H 3642FD6 C68F=2E@CD 2C6 4@?46C?65 E92E :E H:== 36 >F49 92C56C E@ >2<6 4=2:>D 27E6C 2 E9C66\J62C DE2EFE6 @7 =:>:E2E:@?D 6IA:C6D @? (65?6D52J[ E96 E9:C5 2??:G6CD2CJ @7 E96 7656C2= E2<6@G6C @7 u2??:6 |26 2?5 uC655:6 |24]k^Am
kAm(9:=6 E96 32?<D AFE E@86E96C E6?D @7 3:==:@?D @7 5@==2CD :? >@CE8286 D64FC:E:6D 324<65 3J C:D<J =@2?D[ E96 u656C2= w@FD:?8 u:?2?46 p86?4J :D ?@E D66<:?8 E96 E@E2= 2>@F?E :? 4@>A6?D2E:@? 3642FD6 D@>6 @7 E96 >@CE8286D 2C6 DE:== 8@@5 2?5 E96 :?G6DE>6?ED DE:== 42CCJ D@>6 G2=F6] x? E96 &q$ DF:E[ E96 286?4J D2:5 :E @H?65 Sc]d 3:==:@? H@CE9 @7 >@CE8286D[ H:E9 =@DD6D E@E2=:?8 Sh__ >:==:@?] }68@E:2E:@?D 36EH66? E96 286?4J 2?5 &q$ 92G6 J:6=565 =:EE=6 AC@8C6DD]k^Am
kAm%96 EH@ >@CE8286 8:2?ED 24BF:C65 E96 D64FC:E:6D :? E96 J62CD 367@C6 E96 9@FD:?8 >2C<6E 4@==2AD65 2D E96J 6IA2?565 C2A:5=J 2?5 =@@<65 7@C ?6H :?G6DE>6?ED E92E H6C6 D66>:?8=J D276] pE :DDF6 :? E9:D 42D6 2C6 D@\42==65 AC:G2E6\=236= D64FC:E:6D E92E H6C6 324<65 3J DF3AC:>6 2?5 @E96C C:D<J =@2?D 3FE H6C6 C2E65 2D D276 ppp :?G6DE>6?ED 3J E96 C2E:?8D 286?4:6D]k^Am
kAmx? E96 J62CD 367@C6 a__f[ “E96 >2C<6E H2D D@ 7C@E9J E96? :E H2D 92C5 E@ 7:?5 8@@5 BF2=:EJ =@2?D E@ D64FC:E:K6 2?5 9@=5 :? J@FC A@CE7@=:@[” D2:5 s2G:5 u6=E[ 2 =2HJ6C H9@ D6CG65 2D 56AFEJ 86?6C2= 4@F?D6= @7 E96 7:?2?46 286?4J F?E:= y2?F2CJ a_`_] “u2??:6 2?5 uC655:6 E9@F89E E96J H6C6 E2<:?8 ppp EC2?496D[ 2?5 =:<6 D@ >2?J :?G6DE@CD[ E96J H6C6 DFCAC:D65 H96? E96J 5:5?’E EFC? @FE E@ 36 DF49 BF2=:EJ :?G6DE>6?ED]Qk^Am
kAmu2??:6 2?5 uC655:6 925 @E96C C62D@?D E@ 3FJ E96 D64FC:E:6D[ #@@5 25565] u@C DE2CE6CD[ E96J 42CC:65 9:896C J:6=5D 2E 2 E:>6 H96? E96 EH@ >@CE8286 8:2?ED 4@F=5 3FJ E96> FD:?8 >@?6J 3@CC@H65 2E C@4<\3@EE@> C2E6D[ E92?<D E@ E96 :>A=:4:E 7656C2= 8F2C2?E66 E96J 6?;@J65]k^Am
kAmx? 255:E:@?[ 3J =2H u2??:6 2?5 uC655:6 H6C6 C6BF:C65 E@ 324< =@2?D E@ =@H\E@\>@56C2E6 :?4@>6 2?5 >:?@C:EJ 3@CC@H6CD[ 2?5 E96 AC:G2E6\=236= D64FC:E:6D H6C6 4@F?E65 E@H2C5 E9@D6 8@2=D]k^Am
kAm“r@>A6E:E:G6 AC6DDFC6D 2?5 @?6C@FD 9@FD:?8 8@2=D 4@>A6==65 E96> E@ @A6C2E6 >@C6 =:<6 96586 7F?5D E92? 8@G6C?>6?E\DA@?D@C65 8F2C2?E@CD[ ” #@@5 D2:5]k^Am
kAmx? 724E[ uC655:6 H2D H2C?65 3J C68F=2E@CD :? a__e E92E :ED AFC492D6D @7 DF3AC:>6 D64FC:E:6D 925 @FEA2465 :ED C:D< >2?286>6?E 23:=:E:6D[ 3FE E96 4@>A2?J 4@?E:?F65 E@ =@25 FA @? 563E E92E F=E:>2E6=J D@FC65]k^Am
kAmpD @7 yF?6 b_[ uC655:6 |24 9@=5D >@C6 E92? Sg_ 3:==:@? :? >@CE8286 D64FC:E:6D 324<65 3J >@C6 D92<J 9@>6 =@2?D =:<6 DF3AC:>6 >@CE8286D[ ~AE:@? p#| 2?5 p=E\p =@2?D] uC655:6 6DE:>2E6D :ED E@E2= 8C@DD =@DD6D DE2?5 2E C@F89=J S`h 3:==:@?] u2??:6 |26 9@=5D Sbg 3:==:@? @7 D64FC:E:6D 324<65 3J p=E\p 2?5 DF3AC:>6 =@2?D[ H:E9 =@DD6D DE2?5:?8 2E ?62C=J S`c 3:==:@?]k^Am

(0) comments
Welcome to the discussion.
Log In
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.