Banks Seeking Appeal Of FHFA Suits

Banks targeted in 15 active suits filed in 2011 by the Federal Housing Finance Agency over mortgages sold to Fannie Mae and Freddie Mac prior to the housing finance crisis have asked a federal appeals court to intervene.

A report by Thompson Reuters says the banks claim a federal district court judge “systematically deprived” them of evidence they could use as a defense. They said the judge “issued rulings aimed at coercing settlements,” the report said.

The banks involved include UBS AG, JPMorgan Chase, Bank of America and others. The report quotes analysts saying the defendant banks “face tens of billions of dollars in possible damages.” The banks are accused to violating securities laws by misleading the two government-sponsored enterprises about the quality of loans packaged into $200 billion in securities, the report says.

In January, FHFA announced an $11.6 billion settlement between BofA and Fannie Mae over mortgages sold to the GSE.

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