Fannie would get about $537M in deal with Lehman

WASHINGTON (AP) -- Lehman Brothers Holdings Inc. has reached a settlement with Fannie Mae that would allow the mortgage finance giant to recover about $537 million for its claim against the estate of the failed Wall Street bank over soured mortgage securities. The settlement announced last Thursday must be approved by a federal bankruptcy judge. It valued Fannie's claim over home loans and mortgage securities it bought from Lehman before the financial crisis at about $2.15 billion. But under Lehman's bankruptcy proceeding Fannie would get about 25 percent of that. A Fannie official called it a fair outcome. Fannie and sibling Freddie Mac were rescued by the government in a $187 billion bailout after they were hit by massive losses on high-risk mortgages. Lehman's bankruptcy was the biggest in U.S. history. Published: Mon, Jan 27, 2014