In 2011, FHFA filed a case against UBS and 17 other financial organizations, accusing them for mis-selling mortgage-backed securities to the government-sponsored mortgage firms.
The litigation, which continued from the third quarter of 2011, accused the bank for selling faulty RMBS between 2004 and 2007.
The US mortgage finance companies Fannie Mae and Freddie Mac collapsed during the financial crisis of 2008, and since then both are being managed by the FHFA.
FHFA filed a total of 18 lawsuits involving claim of $200bn of mortgage-backed securities sold to both mortgage finance companies by giving materially false statements about the quality of mortgages.
Most recently, Citigroup inked an agreement with the US FHFA, to settle the case pertaining to the sell of $3.5bn of risky mortgage-backed securities.
