The Federal Housing Finance Agency announced a settlement for $550 million with HSBC North America Holdings, related companies and specifically named individuals (HSBC), resolving claims that it violated private-label mortgage-backed security laws.
The claims alleged violations of federal, Virginia and District of Columbia securities laws in connection with private-label mortgage-backed securities purchased by Fannie Mae and Freddie Mac during 2005-2007.
As a result, HSBC will pay $374 million to Freddie and $176 million to Fannie.
