Goldman Sachs In Settlement Talks Over FHFA Mortgage Lawsuit

goldman

Goldman Sachs is said to be in talks currently regarding the lawsuit with FHFA or the Federal Housing Finance Agency. The U.S. regulator claims Goldman sold bad mortgage-backed securities to Freddie Mac and Fannie Mae. This could cost the company anywhere from $800 million to $1.3 billion according to persons close to the talks.

Refinance at
Loan Type

Please enable JavaScript for the best experience.

Many people feel that amount is too high, others feel its too low. But history would tell us the figure is close to being right. Morgan Stanley reached an agreement very close to the $1.3 billion mark back in February to the U.S. regulator for a similar sale of faulty mortgage backed securities, according to Reuters.com.

In 2010, Goldman Sachs paid $550 million to settle a Securities and Exchange Commission lawsuit called Abacus 2007-AC1. This lawsuit is very likely to pass that large settlement.

This year alone there have been numerous settlements and lawsuits. Once again, in February Morgan Stanley agreed to pay $1.25 billion. In March, Bank of America paid $9.5 billion to Freddie Mac and Fannie Mae. That broken down is $6.3 billion in cash and a buyback of $3.2 billion in bonds.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Facebook Iconfacebook like buttonTwitter Icontwitter follow button