FHFA alleges banks violated federal securities laws when they sold more than $200 million in mortgage-backed securities to Fannie and Freddie. The complaints seek damages for negligent misrepresentation. Some banks, including BofA, already face legal fees associated with civil suits brought against them by private investors. Some observers have criticized federal regulators, like the Federal Reserve, for not doing more to reel in mortgage lenders and banks that were brokering questionable loans. Lafferty: “Everyone from the Fed down knew about this and chose to let it go””]
Source: https://www.cuinfosecurity.com/mortgage-mess-feds-blame-banks-a-4030