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Federal Regulator To Sue Over Mortgage Securities

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Federal Regulator To Sue Over Mortgage Securities

Business

Federal Regulator To Sue Over Mortgage Securities

Federal Regulator To Sue Over Mortgage Securities

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A top housing regulator is about to sue more than a dozen major banks over mortgage securities they sold in the run-up to the financial crisis, according to The New York Times. The Federal Housing Finance Agency accuses them of misrepresenting the quality of securities. The agency oversees Fannie Mae and Freddie Mac, the giant mortgage guarantors that lost billions from the housing collapse.

STEVE INSKEEP, host:

NPR's business news starts with Washington versus big banks.

(Soundbite of music)

INSKEEP: A housing regulator is about to sue more than a dozen major banks over mortgage securities they sold in the run-up to the financial crisis. The New York Times reports the Federal Housing Finance Agency plans to file the suits against banks, including Goldman Sachs and Bank of America, accusing them of misrepresenting the quality of securities they sold during the housing bubble.

This agency oversees Fannie Mae and Freddie Mac, the giant companies that lost billions from the housing collapse and were eventually taken over by the government.

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