After Switzerland’s largest bank UBS reached an $885 million agreement with the government-sponsored enterprises last month to settle claims that it improperly sold them mortgage-backed securities during the housing bubble, Fitch Ratings thinks more banks will choose to fight any charges made against them in court rather than pay excessive costs like this. 

Two years ago, FHFA filed 18 lawsuits alleging that banks misrepresented the quality of private-label mortgage securities sold to Fannie Mae and Freddie Mac before the financial crisis.

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