WASHINGTON — The conservator of Fannie Mae and Freddie Mac late Thursday announced an $885 million settlement with UBS Americas of charges that the firm misrepresented the quality of private-label mortgage-backed securities Fannie and Freddie bought during the housing boom.

UBS will pay $415 million to Fannie and $470 million to Freddie to resolve claims related to securities sold to the two government-sponsored enterprises between 2004 and 2007, the Federal Housing Finance Agency said.

"The satisfactory resolution of this matter provides greater clarity and certainty in the marketplace and is in line with our responsibility for preserving and conserving Fannie Mae's and Freddie Mac's assets on behalf of taxpayers," said Edward DeMarco, acting FHFA director.

FHFA originally filed a case in 2011 alleging the bank misrepresented the quality of loans underlying $6.4 billion in residential mortgage-backed securities sold to Fannie and Freddie.

The UBS case is one of 17 that have been filed by the agency against major financial institutions to recover nearly $200 billion that Fannie and Freddie spent on mortgage-backed securities. U.S. District Judge Denise Cote in Manhattan presided over the case. She also presides over still-pending FHFA suits filed against JPMorgan Chase, Bank of America and Goldman Sachs.

This is the third settlement the FHFA has reached. The agency previously negotiated deals to settle cases against Citigroup and General Electric, although the settlement amounts were not statutorily required to be disclosed.

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