FHFA Can't Sue UBS Over $1.1B In Problem MBS, Judge Says

Law360, New York (June 12, 2013, 2:59 PM EDT) -- The Federal Housing Finance Agency can't make a UBS AG affiliate buy back allegedly defective loans in a $1.1 billion mortgage-backed securities pool that the Swiss bank sold to investors because only the securities' trustee has that power, a New York state judge ruled Wednesday.

Judge Jeffrey K. Oing said during a hearing that the FHFA, which oversees the housing giants Fannie Mae and Freddie Mac, can't sue UBS directly as an investor in the securities because only the securities' trustee, U.S. Bank NA, has the...
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