The Federal Housing Finance Agency (FHFA) on Wednesday filed suit against UBS Americas for misrepresenting the quality of private label, non prime MBS it sold to Fannie Mae and Freddie Mac during the housing and mortgage boom.

The GSE regulator is seeking to recover losses that Fannie and Freddie suffered when they bought $4.5 billion of PLS through UBS Americas, which underwrote the MBS. The lawsuit is the first to result from investigations FHFA launched last July. Additional civil actions against other Wall Street firms that sold nonprime MBS to the two GSEs are expected.

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