The NCUA has settled a complaint about the way HSBC sold mortgage-backed securities to five failed corporate credit unions without having to go to court.
The bank has agreed to pay NCUA $5.25 million in the matter, without admitting fault and the settlement lifts the total the agency has managed to recover from MBS-selling banks to $170.75 million.
The agency said it will use the money to help offset the costs of settling claims against losses from the securities. Credit unions have had to pay assessments to help cover those claims and the agency has taken three banks to court over the losses.
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