While there are likely to be more settlements between the GSEs and mortgage lenders, a report from Keefe, Bruyette & Woods (KBW) said the price of a settlement "might be too high for some originators who believe that their underwriting standards were strong."

The settlements entered into between Fannie Mae and Ally Bank and Fannie Mae and Freddie Mac and Bank of America are in line with what KBW has previously forecast for the industry. The Ally Bank settlement, at 55 basis points of the unpaid principal balance, would equate to approximately $26 billion in industry losses on loans sold to the GSEs; KBW’s previous estimate for base case losses was $28 billion.

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